Debt Review For the Win
Money Makeover Challenge
City Press and ABSA run an annual Money Makeover Challenge
This year’s winner chose debt review to help him get ready for retirement.
Debt Review Made All The Difference
Though the other contestants also made dramatic changes and all improved their financial situation it was the journey of soon to be retiree Johan that took centre stage.
Johan and his wife were deep in the debt spiral, relying on new debt to repay existing debt and they had fallen into various poor financial habits.
When the challenge got underway Johan made the big decision to enter debt review. By adjusting their budget (including insurance products) they were able to find an additional R4000 each month. They were able to do this because entering debt review meant they could realistically cover their debts within a reasonable time period (the plan is over 5 years) before Johan’s retirement. The Debt Counsellor also helped them create a realistic monthly budget.
Johan made use of debt counselling practice Meerkat, who helped him get massive concessions on his debts.
Johan saw a 45% reduction in monthly installments.
At the same time the average interest rates across all his accounts dropped from 21% down to less than 1%.
This massive change enabled him to not only begin paying off his debts but also start saving each month towards an emergency fund (in case something goes wrong down the line). Planning for the unexpected can make all the difference and Johan has now been able to do this for the first time in many years.
It is great to see how debt review helped this year’s contestant Johan win recognition for making the most effective change. Johan will be debt free before he reaches retirment.