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Writer's pictureKeelan Francis

Drowning in Debt – how a consolidation loan cleared debts

Dawie and Magdalena have two children and another one on the way. Their problems started when Dawie was retrenched 6 years ago and he took over a year to find another job.


During this time they ran up accounts and took out personal loans to try to keep up. But instead of helping them, this just landed them further in debt.


Dawie and Magdalena have a combined salary of R27 000 and debt totalling nearly R418 000, including their outstanding bond . Each month, their debt repayment obligations were R11500.


Naturally, with an ever rising cost of living, they were unable to repay all of their loans. Soon the judgements started to stack up and the bank even rescinded their account. With their new baby on the way they needed to sort out their lives and get some financial peace of mind.


Mattfin was able to consolidate their debt into a single home loan. In doing so, we saved them a whopping R5 800 per month on their repayments.


By applying for a second home loan on their behalf, we were able to access sufficient capital to settle all of their short term debt. That meant we were able to start a financial rehabilitation process to clean up their credit profile.


We were able to switch them back to the bank in a little over eight months and they now have a home loan with no other debt to worry about. They are even paying extra from the saving we made for them into their home loan which should enable them to pay the new home loan off much faster than normal.

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