ThuthukaSA

Ending the year well with R1,25Mil

Had we not come to see you in 2021, we would have been finished”. These are the words of Angela [not her real name] in response to the increases in interest rates of last week Thursday that brought prime to 10,5%. I met her and her husband around July 2021. They were referred to me by their friend. In a nutshell, their bank was issuing judgments for their cars and credit cards and they were worried that their home was going to be repossessed. They had been running successful businesses throughout their marriage of well over 2 decades until Covid-19 disrupted them. Like most businesses in the hospitality and travel sector, they had to close down. To their advantage, Angela had continued to operate her practice. When we first met, they had one question for me “do you think it is possible for Angela to buy me out of the house so we can save our home?” “Is it that bad?” I asked. They both nodded. So we got them to sign the necessary authorities and I went through their credit reports, bank statements, etc…. Yes, it was bad. There were at least 5 judgments against the husband’s name. How are you married? Was my next question. ANC, was the answer. I smiled and I told them “my motto is; it is better to try and fail than failing to try” let us go for it.

We started with the long journey of getting Angela out of debt and it was a tough one. There are still school fees to be paid for their daughters and other family responsibilities. We had to clear all the arrears against Angela before we could apply and this is what caused the longest delay. Finally her credit record was clear of arrears in March this year. We applied immediately. I was worried as I saw loan declined responses, even their bank declined. Finally, the last bank approved her for  R1,25Mil. I emailed them and said it is done 😊 It has taken them 9 months to finalise the new bond registration because they had to raise the conveyancing fees.

The following debts will be gone when the funds are paid into her account by the end of the week. The table was put together in October 2021 when interest rates were lower. Monthly instalments are now higher due to the increases in interest rates

We have crafted a savings and investments plan that will see them investing R15 000 per month. Part of the investments is to ensure the following;

  •         From 2023, the girls’ school fees are going  to be paid in full in January
  •         Provision for varsity fees, we have 4 years before the first daughter is due for varsity
  •         Emergency fund so they do not go back into debt, etc…

Names and some details have been changed to protect their confidentiality.

I invite you to join us on the Steps to get out of debt Webinar on 7 December. Click here to register.

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