Original Publish Date: || Thu, 18 Jun 2015 14:03:47 GMT || There has been a growing demand for debt counselling for lower income-earning consumers. CNBC Africa is joined by Benay Segar COO of the IDM Group for more on this trend.
We often get the following scenarios that can have the result that debt counseling and debt review actually outs you off much worse than your current situation. What happens if consumers wait too long after they realize that they are in financial distress before they apply for debt counseling and debt review. The answer is very simple yet there is a complex reasoning behind the answer.
If you leave your accounts to get so far in arrears and then apply for debt counseling, Help with debt, debt counselors cannot guarantee that we will be able to lower that specific repayment. The reason being is that your creditors are forced to first bring your arrears amount up to date before they can start paying off your capital. Furthermore, the National Credit Act only allows consumers under debt counseling and debt review to extend certain agreements for a maximum period. This is also dependant on the age of the agreement. For instance, if you have only a few months left on your original contract term but you are in arrears with almost half the agreed amount, the period cannot be extended so much that you will benefit from debt counseling. I had a new client today that was more that 22 months in arrears with a finance agreement that only had 8 months (original) contract term left. The result was that the restructured payment for that account was almost R200 more than his original installment.
This brings me to my next example. Normally if I get clients that are not in arrears with accounts but foresee a difficult financial future, I am almost guaranteed to more than halve their payments.
Bottom line. The sooner you make a plan to sort out a dismal financial situation, the better. Banks and other credit providers respect clients that are precaution and make arrangements throughdebt counselling and debt review sooner than later. If the credit providers have to phone trace and keep on asking you for money they will view you as a risk.
If you feel that you need some more info please contact Help with Debt today
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What is debt counselling? More info here…http://www.debtcounsellinghelp.co.za
Debt counselling is the process that is intended to help restructure the debt obligations of consumers who cannot pay their debts. A consumer will have to involve a debt counsellor who will negotiate the restructuring of a consumer’s debt obligations with his or her credit providers. The purpose of debt counselling is to assist consumers in meeting their debt commitments.
If you need the help of a debt counsellor, simply visit our website and complete contact form online. We will call you back and take you through the process step by step. We will answers all your questions and explain your rights you have while in debt counselling.
So you would like to know more about Debt Counselling… The good, the bad and the ugly… well almost. Moeshfieka Botha, Media and Communnications Manager for Credit Matters will give you the low down in this first of 10 series of videos. Let her know if there are any topics you would like her to discuss in her series. Contact her on 021 431 9100… http://www.creditmatters.co.za
Clear Your Debt & Take Back Your Life Here: https://bit.ly/316MRtY
Many would say the heart of any business , is the business income , but truly the heart of every business is the team leading together as unity to the purpose. We are a debt counselling firm and our purpose is to serve as a team to help the over-indebted, to help unlock financial freedoms where there is financial strain. We have asked each and every employee/ member of CS Debt Counselling the reason they like working for such a small business. Thank you to every team member working at CS. It is a privilege to work with you. This is a dream team to be proud of. This is CS Debt Counselling. www.csdebtcounselling.co.za