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22 February 2013
DebtBusters is seeing a large increase in applications from individuals under debt counselling with other debt counsellors. They want to move to DebtBusters for various reasons, most commonly a lack of service delivery from their original debt counsellor. The following story is a recent case of a South African consumer under debt counselling:
Before applying for debt counselling, Mrs Botha a single mother of two and a government employed school teacher, had fallen into the debt spiral and almost lost everything.
“Over the years I had taken on too much debt and was no longer able to meet my debt requirements. After many sleepless nights and consistent threats from my credit providers, I decided to seek financial help in order to service my debt. I applied for debt counselling with an alternative debt counselling company, as I knew that I would not qualify for a debt consolidation loan and it would simply put me into further debt,” said Mrs Botha.
Mrs Botha’s original debt counsellor, did not do a thorough budget for her, and gave her no feedback after two months as to whether they had received accepted proposals for her debt repayments from her credit providers. When she eventually managed to get hold of her debt counsellor, they did not know what had been accepted. On further investigation by Mrs Botha, the debt counsellor had not received accepted proposals on the majority of her debt, and in particular her homeloan and vehicle finance. In addition to this, Mrs Botha’s total debt obligation per month was R14,000. However, unfortunately the best that the alternative debt counselling company could do was to reduce her monthly debt instalment to R11,000 as they did not use the industry rules engine. However by doing so, Mrs Botha would still be unable to afford her debt and thus, had to find help elsewhere.
“I decided not to give up hope and instead called DebtBusters. After reviewing my situation, a DebtBusters financial consultant successfully signed me up for debt counselling, enabling me to afford my debt, by paying a monthly instalment of R8544 per month,” Mrs Botha said.
When one of DebtBusters expert negotiators began to attend to Mrs Botha’s case, due to the fact that she had previously applied for debt review, many credit providers refused to help her.
Mrs Botha’s debt consisted of:
- 6 Unsecured debt accounts
- 2 vehicle finance loans
- 1 Home loan
“I was so relieved when DebtBusters agreed to help me even though my case was a particularly difficult one. DebtBusters were up to the challenge and had my best interest at heart,” said Mrs Botha.
DebtBusters negotiated with Mrs Botha’s vehicle finance company, allowing the vehicle finance loans to be placed back under debt counselling, under the condition that Mrs Botha pays off a total of R5841 for both vehicle finance loans. DebtBusters negotiated with the attorney in charge of Mrs Botha’s largest unsecured credit loan and came to the agreement that Mrs Botha can pay lower monthly instalments, by extending the payment terms and avoiding legal action.
“DebtBusters negotiators even managed to negotiate with my home loan credit provider, allowing me to make lower instalments of R3,435.95 per month instead of R4,430.96 per month, over extended payment terms with lower interest rates of 7.19% instead of 9.15%,” said Mrs Botha.
A similar arrangement was negotiated for Mrs Botha’s unsecured debt and on average the interest rates were reduced by 13%, resulting in saving Mrs Botha up to R1300 per month.
All of Mrs Botha’s debt will solve under an affordable amount of R8,544 per month, saving Mrs Botha a total of R240,040 by reducing interest rates. However, when the offer was first presented to Mrs Botha, although she was extremely happy, she was still unable to afford the monthly instalment of R8,544 and the vehicle debt repayment of R5,841 on her first month’s payment.
However, DebtBusters expert negotiators are always up for a challenge and due to their established relationships with credit providers, the negotiator then started the process of re-negotiating Mrs Botha’s unsecured debt repayments.
“Through negotiation, again DebtBusters successfully extended the monthly instalment terms for my unsecured debt by another month. By doing so, I can afford to pay the debt repayments on both vehicles, and make payment for my home loan. From the second month of debt review, I was able to pay all my credit providers as per normal process,” said Mrs Botha.
Mrs Botha’s biggest assets, her two vehicles and house, were fully secured by DebtBusters and all her debt was made affordable. Once Mrs Botha finishes paying her unsecured debt, she will no longer be over indebted and a clearance certificate will be issued to her and her credit providers.
“I was extremely nervous entering into debt counselling four years ago, as I knew little about the process. Although I am now on a tight budget, DebtBusters advised me on how to manage my money and to take control over my financial situation. By keeping up to date with my debt payments and staying on debt counselling with DebtBusters, I have been given a second chance to build a brighter future, not just for myself, but for my children too. I can finally see the light at the end of the debt counselling tunnel,” Mrs Botha Said.
DebtBusters is South Africa’s largest and most successful debt management company, which believes that South Africans are drowning in debt and cannot solve this issue on their own. DebtBusters has helped over 15,000 South African consumers, getting 90% of them debt free in less than 60 months. Face your financial burdens and get out of debt today! Call DebtBusters on 086 999 0606 or visit www.debtbusters.co.za.
But that’s not all! DebtBusters also offers wider financial advice on commonly miss sold products such as credit life insurance and funeral cover. DebtBusters sister company, InsuranceBusters, finds affordable ways to keep you financially secure by offering financial planning, life cover, household contents cover, business insurance and vehicle cover.
For more information on InsuranceBusters visit www.insurancebusters.co.za or call 021 481 1704 to speak to one of our expert insurance brokers.