Lydia and Roy, parents of two daughters, knew for a long time that they were not doing well financially. A loan joined the loan, the debts swelled, and the financial hole they found themselves in deepened. “People think a loan will solve the problem. It helps in the short term, but it doesn’t solve the problem in the long run.”
Lydia and Roy continued to take out loans whenever the overdraft reached the credit limit limit. They found themselves in debt of NIS 300,000. They didn’t know how to get out of the situation, but they understood very well that they had to act quickly before things got out of hand.
About a month before turning to the paamonim, they had to turn to their parents for urgent help. The bank informed them that it had blocked their bank account and credit cards. It was a moment that helped in making the decision to make a change and, on the recommendation of Roy’s co-worker, they decided to turn to the Paamonim organization for assistance.
The process was not easy. From the very beginning, Lydia and Roy were asked to write down each and every expense. Together with the lender, we examined each of the expenses in order to understand what their true situation is and where the money is going. Lydia, who was responsible for the financial management of the household, was not surprised by the situation that emerged. Roy, who was less involved in day-to-day financial management, was surprised when the numbers came to his attention. Lydia and Rio are no exception. Similarly, most of the families who receive guidance from paamonim are not fully aware of their financial situation and underestimate their average monthly expenses.
Lydia and Roy were accompanied by paamonim for six months. Boaz, a Paamonim volunteer, helped them, as an outsider, see the full picture of their financial situation and better identify the holes into which they fall. “Boaz maintained neutrality throughout the escort period. Since he had no interest, he gained our trust and helped us understand that we needed to take meaningful actions to improve our situation.” The couple had to make difficult decisions and had to make major concessions, which affected their quality of life in their daily routine. “Giving up the family car was the hardest,” says Lydia, “We had an expensive car and it was hard for my husband to give it up, but we realized that maintaining the car made it difficult for us to straighten out our financial situation, and that we had no other choice.”
“After a few months, we managed to strike a balance between income and expenses. We are in control of the money, everything is more organized and the conduct is different. No more payments, no more loans. You get by with what’s there. If you don’t, you don’t buy, and you certainly don’t deepen the existing debts.” Lydia recommends not running away from problems, but facing them, getting ahead of them and addressing them.
The couple’s dream is to fly to the United States. In the meantime, they are struggling to repay their loans and not repeat the mistakes of the past. “I believe we will succeed,” Lydia says, “we are trying. We’ve even managed to open a small savings plan.”Contribution