40 year old Simon from Diepsloot worked hard throughout his career to make sure that everything was firmly set in place for his family in the future. His current job as an I.T Manager at one of Sandton’s big 5 law firms, means that he has essentially ‘made it’ right? But when his monthly debt repayments are a figure that is more than his monthly income after deductions, it’s a definite red flag.

Luckily for Simon, he was able to get help from Debt Busters through Truth About Money, a 1Life initiative. Debt Busters, helped Simon to consolidate some of his debt and reduce the monthly repayment amounts that he had. So with three bank loans, two vehicles, a home loan, six retail accounts, two credit cards and a personal loan, how did he manage to reduce his monthly repayments for all his debt by almost 50%? Let’s take a look at how his debt repayment reduced:

 

Credit ProvidersOriginal Annual Interest Rate on loan/account Monthly Debt Instalment Before Debt Counselling New Agreed Annual Interest Rate on loan/account New Monthly Instalment
Bank Loan 117,03%R3787,000,27%R2442,40
Bank Loan 214,10%R3244,630,23%R964,56
Bank Loan 315,00%R6556,780,81%R2442,40
Credit Card 118,55%R9242,220,32%R3360,00
Credit Card 218,55%R171,000,32%R69,18
Home Loan 18,10%R8297,467,75%R7497,78
Personal Loan 123,00%R3998,480,36%R2498,24
Retail Account 121,00%R1610,790,34%R46,24
Retail Account 221,00%R927,000,34%R290,00
Retail Account 322,65%R640,000,35%R170,00
Retail Account 422,65%R475,000,35%R74,00
Retail Account 515,00%R1289,550,50%R240,00
Retail Account 615,00%R859,810,20%R500,00
Vehicle 110,25%R3392,607,76%R2776,00
Vehicle 211,75%R1698,317,77%R883,07
     
Total  R44 680,84 R24 253,87

 

Debt doesn’t really have to be something that looms over you forever as you try to figure things out on your own. “I couldn’t sleep at night. I thought of my family and that they may end up on the street. Debt Busters helped me save my home,” says Simon. There are many others like him, and help is only a phone call away. Here is what Debt Busters can do for you:

  • Drop your average monthly repayments by two thirds
  • Make ends meet from the first month
  • Make one repayment per month
  • Prevent credit providers from contacting you by placing you under Debt Counselling
  • Secure your assets
  • Provide legal protection through a court order
  • Help you manage your monthly expenses
  • Facilitate sustainable financial behavioural changes
  • Save you a significant amount of money on interest and fee

So don’t let debt swallow you up, take a conscious step towards ridding yourself of it and move closer towards financial freedom.