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Retrenchment And Debt Collectors

We all know the economy is in trouble and that many businesses are struggling to make ends meet. But it is a kind of intellectual knowledge and it is only when your company is going through hard times that things can suddenly become scary. Peter Mabula’s life was going along just fine until he was hit by retrenchment. Overnight he became one of the statistics of people hit by SA’s ailing economy, joining so many others in the ranks of despair and hopelessness.

 

 

Any Job is Better Than None – Or is it?

With no income, things got crazy pretty quickly. Peter was determined however to find any work which could help put food on the table and pay the bills. His determination and effort paid off. Before long he found new employment but there was a snag. The new job paid less than the old one. This meant that Peter was not able to make all the debt repayment obligations he had agreed to (and signed for) in the past like when he earned more at his previous job.

‘He spent many a sleepless night worrying how he would provide properly for his family’

 

Sleepless Nights

He began to skip payments on some debts and only pay others. Each month he had to decide who to pay in full. Creditor’s collections agents began to call regularly, harassing Peter. This really embarrassed him and he found it very humiliating. His confidence took a serious knock. He spent many a sleepless night worrying how he would provide properly for his family – a wife and his two children aged 9 and 4.

Debt Review

It was at this low point that a ray of light appeared in Peter’s life when he heard about debt review. He decided to give a debt counselling firm a call and see what if anything they could do for him. He was amazed when they consulted with him and explained how debt review could help him cover his necessary monthly costs and still pay back his creditors (just at more reasonable monthly repayment amounts).

The debt counselling firm (Debt Central) were able to organise that all the debt owing was repaid through a PDA in one easy payment and to Peter’s amazement negotiated reduced monthly repayments of 50% of what he had been asked to pay normally.

This meant that an extra R3600 was now available for his necessary monthly household costs. These funds were allocated in his budget and for the first time in ages, Peter now knew he had enough to look after his family each month and still pay back his debts.

You Can’t Keep Him Quiet About Debt Review

Normally debt is one of those things we South Africans don’t like to talk about but Peter raves about the service and care he got from his Debt Counsellor. He tells people to get help as soon as they can and really promotes debt review to others. He says that he went from trapped to finally having a way out. While he had always strived to be financially responsible, he had never thought that he might suddenly lose his job and that things could become so bad so fast. Debt review has helped his family cover their costs and him keep his dignity.

‘he had never thought that he might suddenly lose his job and that things could become so bad so fast’

Learning from the Process

Peter learnt to work within a monthly budget (which he had always intended to do before but had not got around to doing) and have better financial discipline with his salary so even though he was earning less than before his money seemed to last longer each month. He was even able to set funds aside for those annual costs he never had in the past (like school clothes in January).

Finishing Up His Debt Review

In a relatively short space of time, Peter had paid off all his short-term debt and a clearance certificate was issued as confirmation that all of Peter’s debt had been re-paid. Also because the debt review status is removed from the credit bureau he felt he had a fresh start with regard to his credit score and rating.  Peter says he now has a better understanding and respect for credit use and is being more cautious about making loans beyond his financial capacity.

 

 

Thousands Get Help Every Month

Peter is just one of the hundreds of thousands of debt review success stories out there and he is now a real champion of the process. He advises getting help from a  professional debt counselling firm who care about their clients and can help you keep your dignity when things suddenly turn bad. So, if you are going through tough times get help as soon as you can. It can turn your life around and help you sleep better at night.

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Thanks to Debt Central who helped share Peter’s story with us. They offer debt review services and can be contacted via their website HERE.