Is Debt Counselling For Me?
Debt counselling provides the necessary relief without adding to your existing financial burden or subtracting from your future financial security. A debt counselor goes over your finances to see if you are over-indebted. If this is the case, you have the law on your side.
South African consumers are often over-indebted and struggle to pay back their debt on top of their normal expenses. We know how hard it can be to make ends meet – sometimes it may even be impossible. Consumers then have to cut back fast and often sacrifice saving important funds for their future.
Alternatively, they try to obtain a debt consolidation loan to ease the pressure. Unfortunately, they then find that they don’t qualify, since a good credit record is a requirement for debt consolidation loans. The other option is a short-term loan to manage current debt, which can easily lead to the so-called debt spiral. This involves the accrual of more debt to pay off debt, which results in increased interest rates, which incurs more debt, and so on.
How Will It Benefit Me?
Debt counselling puts the National Credit Act into play. When your debt counselor notifies your creditors that you are under debt review, they take over and negotiate an affordable debt repayment plan to suit your needs. Debt counselling provides legal protection from creditors and debt collectors. The debt counselor’s fees will depend on your affordability, meaning you pay what you can afford, and this is built into your new repayment plan.
Debt review can be seen as debt consolidation without having to take on a new loan, as you will only pay a single premium per month, which is then distributed to your creditors by a trusted payment distribution agency. Your debt counselor does not touch your money. They give you the help you need to make your debt affordable by restructuring it around your living expenses.
Debt counselling is an accessible and easy way for all over-indebted South Africans to get the help of a financial and legal expert. It is best to apply for a free financial assessment as soon as you suspect you cannot afford your debt on top of your other expenses. This gives your debt counselor the chance to include as many credit repayments in the restructuring process as possible. We want to give you a completely optimized financial plan to see you into a debt-free future.
Contact Us and apply for Debt Counselling today!