Buying a home is a long-term commitment - Case study
Carol and Geoff have been married for two years and have a young son. Carol and Geoff both work outside the home and their combined income is more than enough to cover their monthly mortgage repayments. However, the couple were finding it harder and harder to make ends meet. The stress between the couple was beginning to mount and their young son was also feeling the tension.
After some time, with their situation worsening, Carol and Geoff decided to see a financial counsellor. The couple were not sure where their money was going and relied heavily on their credit cards.
Carol and Geoff agreed to work with the financial counsellor to come up with a budget that they could live with. The couple also returned their credit cards and the banks agreed to a payment plan to pay off their considerable debts. This would take some time, but Carol and Geoff were determined to get back on track and were so relieved that their problems were finally getting sorted out.
Geoff was able to find some extra work on weekends to help pay the bills, like water, electricity and the yearly rates. The couple continued to make their mortgage payments. It was hard at first to stick to the budget, but the couple found it easier as it became part of their routine.
As the credit cards were paid off, Geoff was able to leave his second job and had more time to spend with family and enjoy their home.