Is Debt Counselling Or Debt Consolidation The Best Option In The Long Run?
The current economic situation is making life very difficult for vast numbers of South Africans, forcing them to take financial decisions that they would normally avoid.
With most banks reluctant to approve debt consolidation loans to most over indebted consumers, Debt counselling is the only option available aside of course from improving one’s personal financial situation. Where debt consolidation loans are granted, these come with very high interest rates which servers to put the consumer even further into debt.
Debt counselling, although painful initially is the only option that will actually legally reduce your debt exposure immediately. Our clients typically exit the debt counselling process within 36 months.
The most important benefit of debt counselling is that one’s monthly repayments are reduced to one affordable monthly amount which is calculated according to one’s budget, allowing for monthly expenses such as food, transport, school fees etc. Also the single monthly payment is distributed by a government agency to one’s debtors. As long as one abides by the new repayment agreement, no legal action can be taken against a consumer and the most important benefit is that the consumer exits the process with his or her credit record intact.
Debt counselling entails a debt counsellor renegotiating the debt and debt repayments with one’s creditors, and often results in reduced interest rates as well as longer repayment periods being negotiated on behalf of the consumer. Once this negotiation process has been concluded, legal enforcement is sought via the courts, thus protecting the consumer from any legal action being taken by their lenders.
Do You Need To Explore Your Debt Counselling Options?
Debt-911 will guide and assist clients through each step in the process including representation in court if required.
If you find yourself thinking about how you are going to meet your monthly repayments, simply call us, SMS Help to 40935 or fill out the form alongside and one of our trained debt counsellors will call you to assess your personal situation and give you free advice.