Podcast
Questions and Answers
The client's primary financial issue is a lack of sufficient cash flow to manage his expenses.
The client's primary financial issue is a lack of sufficient cash flow to manage his expenses.
True
The quickest way for the client to resolve his cash flow issues is to increase his credit limit.
The quickest way for the client to resolve his cash flow issues is to increase his credit limit.
False
The client's credit profile improves when he has unpaid amounts in his bank account.
The client's credit profile improves when he has unpaid amounts in his bank account.
False
A short-term loan is considered a viable solution for the client facing financial difficulties.
A short-term loan is considered a viable solution for the client facing financial difficulties.
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Exceeding a credit limit means the client is capable of taking additional loans without financial repercussions.
Exceeding a credit limit means the client is capable of taking additional loans without financial repercussions.
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The client can access new loans despite having a full Credit Limit glass.
The client can access new loans despite having a full Credit Limit glass.
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The only source of cash available for the client is his salary.
The only source of cash available for the client is his salary.
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Loanfix is one of the three options available for reducing debt payments.
Loanfix is one of the three options available for reducing debt payments.
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All three options for debt reduction result in the same amount for the single installment.
All three options for debt reduction result in the same amount for the single installment.
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Consumers using Loanfix can expect to rely on their salary indefinitely for debt payments.
Consumers using Loanfix can expect to rely on their salary indefinitely for debt payments.
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Study Notes
Understanding the Consumer
- Target consumer experiences cash flow issues, struggling to meet living expenses and credit obligations.
- Common expenses include rent, groceries, school fees, and monthly credit payments like credit cards and loans.
- Many consumers are over-indebted, leading to difficulty in making payments.
Identifying Financial Problems
- Clients often face a cash flow problem due to monthly withdrawals for loan repayments exceeding available funds.
- This situation results in unpaid obligations, damaging the client's credit profile.
- The consumer's credit card is usually maxed out, limiting options for additional short-term cash solutions.
Credit Limit Issues
- Credit limits serve as a barrier; when exceeded, clients can no longer qualify for new loans.
- The metaphor of a full glass illustrates that additional credit cannot be obtained once limits are reached.
Need for Alternative Solutions
- Traditional loan options become unavailable, pressing clients to seek alternative cash sources.
- The only remaining cash source is the consumer's salary, necessitating a solution that optimizes salary for living expenses.
Reducing Debt Installments
- A strategy to alleviate financial strain includes reducing debt installments to release more disposable income from salaries.
- Ensuring creditors receive lower, manageable payments while the consumer maintains essential living expenses.
Options for Debt Reduction
- Three primary options available for reducing debt payments:
- Debt review
- Consolidation loan
- Debt rehabilitation program (e.g., Loanfix)
- Each option involves a single monthly installment, but amounts vary due to differing rules in each program.
Loanfix as a Unique Solution
- Loanfix is the only program of its kind in South Africa, offering unique rehabilitation loans.
- Allows consumers to qualify for a rehabilitation loan while making reduced payments to creditors.
- After 3 to 4 months in the program, clients transition to a status where their salary is no longer required for debt payment.
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Description
This quiz focuses on understanding the Loanfix product and the target consumers you will market it to. It emphasizes the importance of knowing your customer and their financial situations to enhance marketing strategies. Assess your knowledge on these essential concepts and get ready to connect with potential clients.
