Easing financial burden

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lemmykil

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Hi guys,
I'm looking for some advice please.
Due to some really stupid financial mistakes and short sightedness over the last couple of years I had to enroll for debt review in 2017. I know, I know... But I'd rather save you the sop story of how I ended up in this position...all I can say is MASSIVE lesson learned and I can totally kick my own a** for not having the foresight.

So, I've got about 3.5 years left before the programme is complete, however, with the prices of everything just going up and up and up, I cannot see how having to part with my current fixed payment plan to sort the debt is going to be sustainable long term. Things are already helluva tight as it is.

My car is not part of the review plan, but that is essentially the only area where I can make a cut at this point. Now, here's the catch, because I'm under review I cannot make new debt or enter into new agreements until the programme is completed, but, I'd like to get my vehicle instalment down somehow, either via trade in or renegotiation of the finance terms, but, how do achieve I this considering my current situation?
 
You basically have three choices: decrease expenses, increase income or both. Right now you are focusing on decreasing expenses, but have you thought about increasing income at all? Why not get the vehicle to pay for itself -- become a driver for Uber / Talealot / Mr D on a part-time basis.
 
Go to the institution who financed your vehicle, explain the problem, perhaps you can work out a plan, if your payment history is squeaky clean on the car, perhaps they will offer some relief or not.Be honest and explain.

Unfortunately other then that there is isn't much you can do, other then cutting your budget down, and that would be your biggest issue, less meat, less water usage, less geyser use, no social life, if you have things like DSTV or internet, consider going without at least one for the next 3.5 years.Luxury items are out, outing trips are out, driving around unnecessary is out.

Sounds harsh before even considering speaking to the bank about your car, there is quite a bit you can do with adjusting the budget with regards to what we eat, you are going to have to eat things like, mac and cheese, spaghetti and sauce, mince and rice, cheaper meat cuts or bread and butter, if you have parents or family that can assist speak to them about assisting by living with them for a time period, offer them some rent money and money for a food budget.

It's not going to be nice for the next 3.5 years, budget wise food, and social is about the biggest areas you can save with.
 
What car is it? What is the capital balance?

Only way to make a move there would be the sell it and buy something else cash from the sale.

Instalment goes away and you still have wheels.
 
most of the staff in my building live in Khaya and Mitchells Plain and even with the bus strikes and trains being a huge problem they still manage to get to work

scooters are cheap and light on petrol, you can still get Vespas for under 20k if you want to do it in style
 
lemmykil said:
Hi guys,
I'm looking for some advice please.
Due to some really stupid financial mistakes and short sightedness over the last couple of years I had to enroll for debt review in 2017. I know, I know... But I'd rather save you the sop story of how I ended up in this position...all I can say is MASSIVE lesson learned and I can totally kick my own a** for not having the foresight.

So, I've got about 3.5 years left before the programme is complete, however, with the prices of everything just going up and up and up, I cannot see how having to part with my current fixed payment plan to sort the debt is going to be sustainable long term. Things are already helluva tight as it is.

My car is not part of the review plan, but that is essentially the only area where I can make a cut at this point. Now, here's the catch, because I'm under review I cannot make new debt or enter into new agreements until the programme is completed, but, I'd like to get my vehicle instalment down somehow, either via trade in or renegotiation of the finance terms, but, how do achieve I this considering my current situation?
Click to expand...

So your options:

* Regenotiate current contract down
* Trade in for something with lesser payments
* Trade in for something that results in a fully bought car. Only scenario I can think of is a trade to a scooter/motorbike. You might end up with cash as well. All depends on what car you have already
* Sell car and then use that money as part of public transport

But ya, I wish you well bru. Not a nice space to be in and I hope you develop the willpower and determination to get yourself out of this. What does not kill you makes you stronger.
 
saturnz said:
most of the staff in my building live in Khaya and Mitchells Plain and even with the bus strikes and trains being a huge problem they still manage to get to work

scooters are cheap and light on petrol, you can still get Vespas for under 20k if you want to do it in style
Click to expand...

If he has a family, who bites the back tire and who the front tire, It all good and well getting cheaper transport and all, it being practical depends entirely on the situation, if he has a wife and she is pregnant then no.Quite easy to dish out advise and when reprimanded you act all, what is wrong with a scooter without, considering various factors.

With me for example if I was in a similar spot, living in a rural area, no bike or scooter would work, distances between towns is too far.Above all else, location is the most important aspect.You don't drive a scooter or bike under 250cc to work over a certain distance, driving under 20kms is fine over that 400cc or bigger bike is needed, additionally it depends on the occupation as well, you can't really come to work looking like a cow licked you.

Scooter or bike may be cheap on gas and such, but it entirely depends on various criteria having to be met, you also have to consider how long does he still need to pay for the car, less then 2 years, I would seriously consider contacting whoever financed the car and talk to them, it would mean he would be in an awkward position in that time period, after which he can pump that cash saved in his debts and shorten the period.

As it is he dug an never ending interest pit for him self, plus the paid off car is the best possible asset to have in the short term should things go drastically south, I would start selling other movable belongings before I sell a car. While it may be nice to have 2 fridges, flat screen TV, xbox and some protection with debt review.

Pending the amount of debt, I would much rather sit on a milk crate, stare at the stars, or watch paint dry, and get the debt paid as quickly as possible, get the smallest debts out of the way as quickly as possible, you can reduce the repayment term a lot.

Recovering isn't going to be easy, and the living standard before and after the debt is also going to change, you only really sell an asset like a car if you really have to.The OP mentioned things are tight, some thing tells me he needs to address the living standard a bit, even if that means taking a shower every secondhand day or having to change what he eats.

There is a lot more to it then saying oh oh get a scooter.......
 
so you are making up facts to support your argument

where did he say he has a wife thats pregnant?
 
saturnz said:
so you are making up facts to support your argument

where did he say he has a wife thats pregnant?
Click to expand...

Little goldfish perhaps you should read again.

it being practical depends entirely on the situation, if he has a wife and she is pregnant then no.
Click to expand...
The way the sentence had been written leads up to a hypothetical event, but I guess that is a bit much for our little goldfish to grasp.
 
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