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Question
Posted by: Money | 2011/07/27

Financial Crisis

My take home after deductions is R16 000 and believe you me after paying all the loans i am left with R2 200 I am angry at myself I dont know what to do. I think of resigning. If anyone knows of any banks that can payup all my loans I will be happy. I am drowning. I got paid on the 25th and my rent is R5 000 and i do not have money to pay rent.

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Our expert says:
Expert ImageCyberShrink

Maybe you need a good financial advisor to help you review all those loans and other expenditure, and see if they are all essential.
A young doctor student of mine once asked me : "Prof, how on earth did you manage when you qualified ? With the repayments on my car ( he drove a mercedes ), my wife's car, the house, the holiday flat...( and so on ) "? I said : "Simple. When I qualified, I earned a fraction of what you do, and we couldn't afford to get married, lived in a small rented flat, and had no car at all. It wasn't comofortable, but we could afford it, and could afford to save until we were able to get what we wanted. "

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Our users say:
Posted by: Kelly | 2011/07/28

If only I earned 16k a month!
I guess living above your means will come crashing down on anyone some time or other.
Best thing to do is be honest with youself, put your pride in your pocket and live according to what you can afford right now.
Focus on paying off your debt and once it is done do not forget what you went through to be debt free. Then start all over again and most importantly, live according to what you can afford.

Reply to Kelly
Posted by: Honestly Saying | 2011/07/27


Hi Money

All may not be lost. Have you spoken to a debt councellor or approached a legal firm to be placed under administration. Both of these options allow for the third party to negotiate with your creditors on your behalf, and come up with a payment plan that works for everyone.

Just be aware that you will have to be brutally honest about your expenes and debt, so that the concellor can ensure that you do indeed have sufficient money to survive each month.

Below is an extract from an article I came across years ago that you may find useful.

" Making the Credit Act work for you
There are many ways to make the new National Credit Act work for you. For starters, you should take advantage of your right to your free credit record check. .................. Finally, if you''re overwhelmed by debt, you can approach a debt counsellor - who has been trained and registered by the National Credit Regulator - who will examine your financial situation, and may recommend to the Magistrates Court that you be declared over-indebted. The Court may then re-organise your debt by extending the terms of your credit agreements, postponing payments or challenging unlawful fees or interest. For more information, contact the National Credit Regulator on 0860 627 627, email info(at)ncr(dot)org(dot)za or visit their website at www(dot)ncr(dot)org(dot).za" 

Congratulations on recognising the seriousness of your situation, and seeking advice.

Good luck with the future.

Reply to Honestly Saying
Posted by: Money | 2011/07/27

Megs I have tried the banks and I am blacklisted they cannot help me

Reply to Money
Posted by: Megs | 2011/07/27

Now don’ t be silly and resign- there are few jobs out there, especially ones that pay so well. It is simple- speak to the banks and tell them that you are suffering financially and ask them to increase the loan terms (thus decreasing the monthly payments). OR take out one loan, enough to pay all the loans you have and pay them all off at once, and only pay that one loan (therefore you will only pay interest on one amount). And I have to agree with Motlalentwa- why are you living in such an expensive flat? Is that the cheapest one you could find for the area you live in or is it purely to live in a nice flat? You have to be honest if you want help. If you don’ t HAVE to live there, don’ t. Speak to your landlord / rental agents if your lease is not up for renewal. Tell them your financial troubles and ask if you can move out (and keep your deposit). They may be reasonable because, really, they want someone who can pay the rent monthly. Most institutions are reasonable if you speak to them and not avoid the issue. And also, regarding debt review, a lot of places find that as a scapegoat and although by law they have to comply, they won’ t like it (from my experience). Rather speak to the banks, and one of the places that you have a loan with should be able to let you speak to a financial advisor.

Reply to Megs
Posted by: Motlalentwa | 2011/07/27

Middle class income, enough to live a good life. I am sking myself why do you have to rent a flat that costs you R5000.00. I arrange with debt collectors to pay a monthly affordable installment on my loans and use my bonus to pay off some. it takes time to recover but you will survive. dont resign

Reply to Motlalentwa
Posted by: cybershrink | 2011/07/27

Maybe you need a good financial advisor to help you review all those loans and other expenditure, and see if they are all essential.
A young doctor student of mine once asked me : "Prof, how on earth did you manage when you qualified ? With the repayments on my car ( he drove a mercedes ), my wife's car, the house, the holiday flat...( and so on ) "? I said : "Simple. When I qualified, I earned a fraction of what you do, and we couldn't afford to get married, lived in a small rented flat, and had no car at all. It wasn't comofortable, but we could afford it, and could afford to save until we were able to get what we wanted. "

Reply to cybershrink

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