When illness disrupted their income, the Dlomo family struggled to keep up with their debt repayments. With Meerkat’s help, their monthly repayments dropped from R41,000 to R18,000. Almost four years later, they completed debt review and became debt-free.
When your income changes, your bills do not stop arriving.
For Themba Dlomo, his wife and their two children, six months of illness with tuberculosis were followed by another three months without work. The household depended on his salary, and the financial pressure soon began to build.
They cut back. They tried to make their money stretch. But keeping up with their debts became increasingly difficult.
The following year, Themba secured a part-time contract lecturing position. It brought income back into the household, but he was paid for only nine months of the year.
That left the family facing months without an income while their repayments continued.
They made significant cuts to their household spending and tried using their credit card to cover debt payments. Even then, they could not keep up.
By September 2019, they knew they needed help finding a manageable way forward.
When the Dlomos approached Meerkat, they owed R591,157, with monthly debt repayments of R41,000.
Their debts included two vehicles, two credit cards, an overdraft, a store card and four personal loans.
Through debt counselling, also known as debt review, Meerkat’s debt counsellor negotiated with their creditors and helped put a repayment plan in place.
Their monthly debt repayment reduced to R18,000, giving them R23,000 more breathing room each month.
Their average interest rate also reduced from 36% to 8%.
These were the Dlomo family’s results. Repayment amounts and any interest-rate reductions depend on each person’s financial circumstances and the arrangements made with their creditors.
Alongside the repayment plan, Meerkat helped the family put together a budget that made room for their debts and everyday living costs.
They now had one monthly debt repayment to plan around, with Meerkat helping manage communication with their creditors.
Debt counselling did not make the family’s debts disappear overnight. It gave them a structured way to repay what they owed.
The Dlomos kept working towards that goal, month after month.
In July 2023, they successfully completed debt review and became debt-free.
Their story shows that asking for help can be the beginning of a different financial future, even when the situation feels overwhelming.
You do not need to have the same amount of debt as the Dlomo family to ask for help.
Perhaps you are using your credit card to cover other repayments. Perhaps you have cut back on spending but still run short before payday. Or perhaps you feel anxious whenever a creditor calls.
These are reasons to take a closer look at your options.
Financial difficulties can follow illness, a change in income or years of trying to make ends meet. You deserve a conversation about what may help, without judgement.
If your debt repayments are leaving too little for everyday essentials, speak to Meerkat.
We can look at your income, expenses and debts, explain how debt counselling works and help you understand whether it may be suitable for your circumstances.