Debt Solution Comparison Wizard

What you will need

• Take-home pay each month (all household income you rely on) (R): The amount that lands in your account after deductions.
• Essential living costs each month (rent or bond, food, transport, electricity, school, medical) (R): Do not include debt repayments here.
• Your debts: for each, the balance, interest rate and monthly instalment (list): Store cards, personal loans, credit cards, overdraft, car, mashonisa loans. Your statements show the rate; if unsure, leave it blank and we use 24% as a placeholder.
• Consolidation loan offer, if you have one: interest rate, term in months, initiation fee and monthly service fee (list): Ask the lender for a written quotation showing the total cost of credit.
• Extra you could put towards debt each month by cutting costs (R)
• Six yes/no questions: little or nothing left each month; behind on at least one account; more than three creditors; declined for credit in the last six months; creditors or collectors threatening legal action; tried to pay it yourself before and ended up with more (yes_no_list)
• If a debt counsellor has given you a proposed monthly amount, enter it (R): Optional. Without a quote we show debt review as a range, not a figure.

How it works

STEP 1 Budget: total_instalments = sum(debt.instalment); surplus = take_home - essentials - total_instalments; dti = total_instalments / take_home x 100. STEP 2 Pay it yourself: budget = total_instalments + max(extra_payment, 0); simulate month by month (interest = balance x rate / 12; pay minimums on all, put the rest on the highest-rate debt first); months_self and total_paid_self; if surplus < 0 and extra_payment = 0 then self_feasible = false ('Your income does not cover your current instalments'). STEP 3 Consolidation (only if an offer is entered): principal = sum(debt.balance) + initiation_fee; r = rate / 12; n = term; payment = principal x r / (1 - (1 + r)^-n) + service_fee; total_paid_cons = payment x n; flag 'longer and dearer' if total_paid_cons > total_paid_self; flag 'secured on your home' if the member ticks that the loan is a further bond or access bond. Likely decline note if screen answers 2 and 4 are yes, or dti > 50. STEP 4 Debt review (indicative only): if debt_review_quote given use it, else show 'often lower than your current instalments; the counsellor negotiates the amount and the fees are set under NCR guidelines, so ask for a written quote'. Always show: no new credit until you finish, a debt review flag on your credit record until you receive a clearance certificate, it can take several years. STEP 5 Pointer (not advice): yes_count = number of yes in screen_answers. If yes_count <= 1 and self_feasible: pointer = 'Paying it yourself looks possible'. If yes_count 2-3: pointer = 'Mixed: compare total cost and get a second opinion before signing'. If yes_count >= 4 or surplus < 0 or screen answer 5 = yes: pointer = 'Speak to an NCR-registered debt counsellor about formal options'. If a consolidation offer exists and total_paid_cons <= total_paid_self and yes_count <= 3: add 'The consolidation offer is only worth it if you close the old accounts'. Never label any option 'best'.

What you get

• Left after essentials and debt each month (or short)
• Debt repayments as a share of take-home pay
• Pay it yourself: monthly amount
• Pay it yourself: months to debt-free
• Pay it yourself: total repaid
• Consolidation loan: monthly amount
• Consolidation loan: months to debt-free
• Consolidation loan: total repaid
• Debt review: monthly amount (from your quote, or shown as 'ask for a quote')
• What your answers point towards

What it means

• Your income does not cover essentials and current debt repayments, so paying it yourself is unlikely to work without help.
• The consolidation loan has a lower instalment but costs more in total, usually because the term is longer.
• This loan would turn unsecured debt into debt secured by your home, which puts the home at risk if you fall behind.
• Your answers suggest you may be over-indebted; an NCR-registered debt counsellor can assess you and explain debt review and other options.
• Paying it yourself, with a budget and payment arrangements, looks possible and is usually the cheapest route.
• A fee before a loan is paid out is a common scam sign; do not pay it.

Next step: Want help interpreting this? Book a free session with a money coach, or speak to an NCR-registered debt counsellor (check their NCR registration number on ncr.org.za).

Runs on the device. Nothing is saved unless the member chooses.