Living DEBT Free Ncrdc384 - Kevin Russell

The payments stop, but the balloon remains.

Meet Thabo. For 72 months he paid R5,000 every month. In December 2024 he made his final payment and thought he was done.

Then the letter arrived: BALLOON PAYMENT DUE: R120,000 — Due 15th.
This is the R120,000 surprise many consumers only discover at the end of their agreement.

📌 Real-life lesson:
• 72 x R5,000 = R360,000 paid
• Balloon still due: R120,000
• The monthly installments stopped, but the balloon remained

What can you do when it’s due?
1. Pay from available funds
2. Refinance if approved by lender
3. Sell or trade the vehicle
4. Discuss with your finance provider early — not on the 14th

Check your agreement before the end. Know your amount, know your due date, know your options.

THE PAYMENTS STOP BUT THE BALLOON REMAINS.
KNOW YOUR DEBT. KNOW YOUR POWER.

🔗 www.livingdebtfree.co.za | 📞 082 900 4129 | Kevin Russell NCRDC 384



Disclaimer: Illustrative example. Actual balloon amounts, terms and options depend on your specific finance agreement and credit provider approval. Content educational only, not individual advice.

Why is your monthly payment so much lower?

It could be a balloon payment.

A balloon can reduce your regular instalment — but that amount doesn’t just disappear.
📌 Without balloon: R6,500 per month
📌 With balloon: R5,000 per month

The R1,500 difference hasn’t disappeared. Some of the amount has simply been pushed towards the end — where it becomes a large lump sum of around R120,000.

That lump sum is still your responsibility to settle or restructure when your term ends.

Understanding the full structure today prevents a surprise tomorrow.

🔗 www.livingdebtfree.co.za
📞 082 900 4129 | NCRDC384 | [email protected] | [email protected]



Disclaimer: Balloon/residual payments are legal under the National Credit Act. Figures are illustrative examples only (R6,500 vs R5,000 vs ~R120k balloon). Content for educational purposes only, not individual financial or legal advice

Before you sign a vehicle finance agreement, do you know what happens in the final month?

A balloon payment (or residual) reduces your regular monthly installment, but that capital does not simply disappear—it is deferred to the end of your contract.

📌 What you need to know:
• A balloon payment is a lump sum remaining at the end of the term.
• It is not a bonus or free money.
• You remain responsible for settling or restructuring the balance when it matures.

Understanding the structure of your credit agreement today gives you control over your financial tomorrow.

🔗 Visit www.livingdebtfree.co.za to learn more about structured debt solutions.
📞 082 900 4129 | NCRDC384

Disclaimer: Balloon payments are legal credit mechanisms under the National Credit Act. Content is for educational purposes only and does not constitute individual legal or financial advice.