Pat and Mariz have been married for 10 years and have 4 children. They live in the Montpellier region and rent their apartment. The couple’s income is $ 4,050 per month. What is their monthly budget? What are their revenues and expenses? How can they find a larger remainder of living and what would be the effect of buying back credit? Immersion.
Income based on wages and some support
At 39, Mariz is a management assistant in an IT company and earns $ 1,700 per month. Pat, 40, has a master’s degree in a public transport company and has monthly income of $ 1,900 per month. They receive the housing allowance for an amount of 250 euros monthly and an additional allowance of 200 $ for large families. Recently, they benefited from exceptional income thanks to the activity bonus in the amount of $ 170 for Estelle and $ 225 for Romain.
Constrained monthly expenses
The essential expenses are the rent of the apartment for an amount of $ 1,050, the monthly repayment of the car loan up to $ 350 monthly and the expiration of a work credit contracted to furnish the apartment for an amount of 143 $ each month.
With 4 children, their food budget is significant and represents around $ 1,400 per month. Added to this is the reimbursement of a loan made last year to change the washing machine, i.e. $ 50 per month. The children each have a sporting or cultural activity which represents each month the sum of 400 $ in total. The couple also saves $ 400 per month to finance annual vacations. Their living expenses are therefore less than 260 $.
The repurchase of credit to release from the remainder to live
To find a larger living surplus month by month, Pat and Mariz opt for a repurchase of their credits. This operation would allow them to combine the consumer credits (car, work and allocated to the washing machine) into a single loan, the duration of which will be extended in order to benefit from a reduced monthly payment. Today they reimburse the total amount of $ 543 (car credit + work + washing machine) while with a credit buyout, the monthly payment could be reduced and reduced to $ 400.