06 Sep Typical Savings on Debt with Debt Review

Have you thought about debt review and wondered how much you could save on auto loan repayments, credit card debt repayments, personal loan repayments, study loan repayments, and medical debt? With this debt help system, all your payments are consolidated into one incredibly reduced monthly payment with lessened interest rates because we negotiate with creditors. Gone are the days of Everestesque admin fees and calls from creditors. That’s because debt review also affords you legal protection, so you don’t have to worry about obtaining default judgments against your name.

How does one work out how much they could save on repayments with debt review? True North Debt has put together a handy guide on common debt review savings conventions, how we negotiate, why these conventions exist, and how they’ll affect your life, as well as an example story using our debt review calculator.

For an instant answer, try our debt review calculator.

Debt Review Savings Calculations

Debt review can significantly reduce your current debt repayments through negotiations with creditors. Here’s how to calculate your potential savings. We’re going off the information provided by our debt review calculator.

Gathering Information

First, you’ll need to gather information about how much you owe in total and your income (after deductions like living expenses and tax). Think about bond instalments, vehicle finance, furniture instalments, personal loan instalments, clothing account instalments, subscriptions, credit card debt instalments, overdrafts, study loans, and other debt instalments. List them including admin fees and the interest you owe on them.

Savings Conventions

Next, let’s discuss common debt review savings conventions. Many of our calculations are deduced from historical trends and assumptions about average interest rates and repayment terms.

Example

Anna is a woman in her 30s who has racked up a mountain of debt because of her shopping addiction, a propensity to overspend, accliviting interest in cars, and bond on an apartment she impulsively bought. She also just bought 2 pet rats off of Gumtree who have proven to be monstrously expensive because of their mounting medical bills.

The cost of living has kept rising and her interest rates have increased. Anna just received a Section 129 letter in the mail, and she is at her wit’s end from emotional exhaustion and financial strain. She doesn’t know how she’ll make it through the month without taking out a payday loan. She goes to an unreputable loan firm, which turns her away because of her abysmal credit score.

Anna is a classic example of over-indebtedness–she’s eligible for debt review. The Section 129 letter advises her to apply for debt review, but she wonders how much she’ll save.

She uses True North Debt’s debt repayment savings calculator.

Financial Information

Anna makes R20 000 per month and babysits on the weekends, earning her an extra R1 500. She pays R10 000 in bond instalments and will pay a new payment of R8 500. She pays R3000 on her car and will now pay R2250.

She pays R4000 in personal loan expenses using her credit card, which is now reduced to R1600. She has an affinity for Cotton On and Refinery apparel, which costs her R500 in instalments each month, now reduced to R200. Finally, she pays R5000 on her credit cards each month, and she’ll now pay R2000.

Her monthly expenses are R22500 and will now be R14550. Anna is overjoyed and completes her Form 16 by the next day. She works with her debt counsellor to create a debt payoff calendar and stay financially fit.

Debt review offers a streamlined solution by consolidating multiple debt payments into a single, significantly reduced monthly instalment. This is accompanied by lower interest rates, providing immediate financial relief. Additionally, debt review shields you from the stress of constant calls from creditors and exorbitant admin fees. By providing legal protection, debt review ensures that default judgments are prevented, safeguarding your financial future.

Contact us now to find out how much you could save.