DebtBusters has helped thousands of consumers throughout South Africa, by saving them money and solving their debt and financial difficulties. DebtBusters pride themselves on providing the highest quality service to all clients and ensuring that their trained staff are available to help clients every step of the way.
Review the following DebtBusters debt review and debt management case studies below, to gain a better understanding of the processes, as well as what DebtBusters has to offer.
Click a case study below to expand it.
Debt Review Case Study
This debt review case study outlines how we assisted our client in reviewing his budget to ensure that his belongings were not taken away from him and his family. Mr Classen was in arrears with many of his accounts and was in fear that his house and vehicle would be repossessed. He has a family and did not know what to do. Kate, one of DebtBuster’s debt counsellors spoke with the client to fully understand his position and then offered the best debt solution available.
The first step Kate took was to look at the client’s current household budget and explain the importance of developing a new monthly budget. One area Kate suggested was for his vehicle and home insurance to be reviewed by Insurance Busters (FSB regulated independent broker), resulting in a saving of R2,160 per year.
With this and other budget saving options, Kate helped the client and his family develop a new affordable budget, saving the family over R15,000 per year.
Budget drawn by DebtBusters:
|Net income (after tax & deductions)||R15,200|
|Less living expenses:|
|Food, transport & clothing||R3,600|
|Municipal Rates & Utilities||R1,300|
|Medical Expenses & Insurance||R850|
|Maintenance - Home & Vehicle||R350|
|School Fees & study loan||R450|
|Telephone & Cell Phone||R950|
|Total Living Expenses||R8,000|
|Amount available for debt repayments||R7,200|
The money available to service Mr Classen’s debt is R7200 per month, but currently he has to pay R13,448 per month, so he certainly needed our debt review program. DebtBusters then developed new repayment plans with lower monthly payments & interest rates and sent these to the credit providers asking for their agreement.
|Credit Provider||Original Annual Interest Rate||Monthly debt instalment before debt review||New Agreed Annual Interest Rate||New monthly instalment|
|Credit card 1||23%||R1,610.00||5.5%||R480.00|
|Credit card 2||22%||R905.00||4.5%||R270.00|
The Classen’s family have learnt to live on a reasonable, affordable budget, saving them over R15,000 per annum.What advantages have Mr Classen & his family achieved by going under debt review?
- All new payment plans were accepted by creditors, meaning they get to keep their home and vehicle.
- Monthly fees have been reduced as well as big interest rates cuts, meaning Mr Classen is saving thousands of rand, which otherwise he would have had to pay and is reducing the debt burden every month.
- No legal action will occur whilst Mr Classen makes the agreed payments, meaning no legal costs and a big saving.
Debt Management Case Study
Mrs Nosisa, one of DebtBusters valuable clients, approached DebtBusters looking for help to solve her debt situation. The following budget was drawn by DebtBusters for Mrs Nosisa in order to analyse her current financial situation:
|Net Income||R11, 000|
|Less living expenses:|
|Total Living Expenses||R8, 000|
Mrs Nosisa also has debts. DebtBusters outlined her monthly repayments in the following table:
Overall Result: Mrs Nosisa is indebted as she requires R4 200 per month to pay her debt but only has a maximum of R3 000. However her debt is not out of control yet and it would be better for her to go under informal debt management.
Plan of action:
DebtBusters renegotiates her debt payments to a total of R2 000 each month by asking her lenders to:
- DebtBusters develop a new budget to ensure the client has the maximum amount available to service the debt
- DebtBusters develop a client repayment plan for the creditors by extending the term of the credit agreements to ensure a positive cash flow. This will allow the client to get out of debt without having to get a court order and therefore less cost.
Mrs Nosisa is asked to pay R3 000 each month which is then distributed to all his credit providers.
How has Mrs Nosisa benefited from going under debt management?
- She makes one monthly payment to service all her debt (the funds are distributed through the system)
- It is a repayment she can afford
- She knows how much he has to live on every month
- No more calls from the Credit Providers
- When she is debt free her credit record is clear
- She doesn’t waste time at work trying to sort out her debts
- She can sleep easily knowing that she is on her way to financial stability
Debt Settlement Case Study
In this debt settlement case study, we will describe how we helped our client resolve a large debt when he felt helpless. Over the past few years, Mr Abongile has managed to accumulate a total outstanding short term debt amount of R217 000. Due to the recent passing of a close relative, Mr Abongile inherited an unexpected amount of money, but not enough to cover all his debt.
Mr Abongile therefore decided to contact DebtBusters, who have the best and most reliable debt settlement solution available. Mr Abongile notified Siraj, one of our financial consultants, that he would like to settle his accounts but only has R170 000 available. Siraj then advised Mr Abongile about debt settlement, the benefits and how we can help.
Siraj analysed Mr Abongile’s financial situation by confirming the balances of each debt and which credit provider the debt is with. We then starting negotiating on Mr Abongile’s behalf to negotiate a settlement based on the fact that only R170,000 is available but there is a total debt outstanding of R217,000 that continues to grow each month.
|Total Debt||R217 000|
|Settlement Funding||R170 000|
We managed to successfully complete the process with each of the client’s creditors resulting in the following:
- We settled 8 of Mr Abongile’s accounts in full at a total of R165, 555 and received account closure letters for each account.
- We saved Mr Abongile a total of R51 445.
- Mr Abongile’s is debt free and so has no further charges on these accounts and still has R4,445 of his inheritance left
|Total Debt Now||R0|
|Savings Amount||R51 445|