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Moving A Debt Mountain - Debt Buster Case Study

Being in debt can be a difficult experience. It is so easy to get into yet it seems so hard to get out. It does not have to be. Get some debt help! Money problems most definitely do NOT have to rule your life. Sure it takes a bit of discipline but by chipping away you can get out of debt relatively quickly. The best thing is if you have multiple debts, you can actually accelerate and at the end finish with a big chunk of money that you can use to do what you want with. How do I know this? Because I have worked with customers to take them from deep in debt, to debt free with spare income. Through simply budgeting money automatically. Below is a case study of a customer that is currently on the Debt Buster program. Like most things in our business it is pretty simple.


Starting position - $5,435 in debt. You can see the details of the debt below. She knows her spare income from her budget is $75 per week.

Debt Amount Payments Left Interest Monthly Repayment Order
Insant Finance $2,435 38 29.95% $128.00 1
Personal OD $1,500   19% $23.13 2
Credit Card $1,000   19% $30.83 3
Company OD $500   19% $7.92 4

The order on the right is the order in which the debts are paid off. It is best to pay off the highest interest rate first.


1.  So first up is to clear the Finance company debt. At $75 a week this will be gone in 33 weeks, or about 8 months.
2. Then it is onto the credit card. The beauty here is that she has the $75 surplus plus $32 a week that was being used for the loan payment. Since this loan has been paid off it can now be used to pay down the credit card. At $107 per week! This is acceleration. That credit card debt disappears in about 10 weeks.
3. Now she has $137 to be used for debt reduction. This means the personal OD is gone in about 10 weeks as well.
4. And now our Debt Buster has $160 at her disposal. That last overdraft does not stand a chance and is wiped out in about 3 weeks. Easy.

Debt free in 56 weeks, just over a year!! So it’s not that hard. Plus any extra income would have accelerated the process even more so. Now our friend has $160 a week that can automatically go to savings or wherever she wishes. If she saves this for the next four months she will have $3,219. From -$5,435 to  +$3,219 in 18 months! With only $75 a week surplus in her budget. She has gone from a painful position to a powerful one. With the right tools and a bit of help it can be easy to get Control!

 
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