Firstly Debt reduction is important and secondly if you’re going to leverage debt to build wealth its important to ensure that you only take up efficient loans

South Africa’s debt continues to escalate to worrying levels. That’s as the country’s debt burden has multiplied in the past few years from R500 billion in 2016 to R4.7 trillion last year and is forecast to reach R6 trillion by 2025.

Investment Executive at Foord Asset Management Linda Eedes unpacks this.

Tune into Newzroom Afrika DStv channel 405 for more.

What is DEBT RESTRUCTURING? What does DEBT RESTRUCTURING mean? DEBT RESTRUCTURING meaning – DEBT RESTRUCTURING definition – DEBT RESTRUCTURING explanation.

Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license.

Debt restructuring is a process that allows a private or public company, or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts in order to improve or restore liquidity so that it can continue its operations.

Replacement of old debt by new debt when not under financial distress is called “refinancing”. Out-of-court restructurings, also known as workouts, are increasingly becoming a global reality.

A debt restructuring, which involves a reduction of debt and an extension of payment terms, is usually a less expensive alternative to bankruptcy. The main costs associated with debt restructuring are the time and effort negotiating with bankers, creditors, vendors, and tax authorities.

In the United States, small business bankruptcy filings cost at least $50,000 in legal and court fees, and filing costs in excess of $100,000 are common. By some measures, only 20% of firms survive Chapter 11 bankruptcy filings.

Historically, debt restructuring has been the province of large corporations with financial wherewithal. In the Great Recession that began with the financial crisis of 2007–08, a component of debt restructuring called debt mediation emerged for small businesses (with revenues under $5 million). Like debt restructuring, debt mediation is a business-to-business activity and should not be considered the same as individual debt reduction involving credit cards, unpaid taxes, and defaulted mortgages.

In 2010 debt mediation has become a primary way for small businesses to refinance in light of reduced lines of credit and direct borrowing. Debt mediation can be cost-effective for small businesses, help end or avoid litigation, and is preferable to filing for bankruptcy. While there are numerous companies providing restructuring for large corporations, there are few legitimate firms working for small businesses. Legitimate debt restructuring firms only work for the debtor client (not as a debt collection agency) and should charge fees based on success.

Among the debt situations that can be worked out in business-to-business debt mediation are: lawsuits and judgments, delinquent property, machinery, equipment rentals/leases, business loans or mortgage on business property, capital payments due for improvements/construction, invoices and statements, disputed bills and problem debts.

In a debt-for-equity swap, a company’s creditors generally agree to cancel some or all of the debt in exchange for equity in the company.

Debt for equity deals often occur when large companies run into serious financial trouble, and often result in these companies being taken over by their principal creditors. This is because both the debt and the remaining assets in these companies are so large that there is no advantage for the creditors to drive the company into bankruptcy. Instead the creditors prefer to take control of the business as a going concern. As a consequence, the original shareholders’ stake in the company is generally significantly diluted in these deals and may be entirely eliminated, as is typical in a Chapter 11 bankruptcy.

Debt-for-equity swaps are one way of dealing with sub-prime mortgages. A householder unable to service his debt on a $180,000 mortgage for example, may by agreement with his bank have the value of the mortgage reduced (say to $135,000 or 75% of the house’s current value), in return for which the bank will receive 50% of the amount by which any resale value, when the house is resold, exceeds $135,000.

A debt-for-equity swap may also be called a “bondholder haircut”. Bondholder haircuts at large banks were advocated as a potential solution for the subprime mortgage crisis by prominent economists:

Economist Joseph Stiglitz testified that bank bailouts “are really bailouts not of the enterprises but of the shareholders and especially bondholders. There is no reason that American taxpayers should be doing this”. He wrote that reducing bank debt levels by converting debt into equity will increase confidence in the financial system. He believes that addressing bank solvency in this way would help address credit market liquidity issues.

Watch Rene Moonsamy, director at National Debt Counsellors discuss the ins and out of Debt Review and announce the latest winner of the NDC Debtonator giveaway live on air. 18-05-18

More Insider Revelations about Credit Counselling Firms – Avineet Kalsey – recent interview series, Part 19-1, explains about ‘non-profit’ credit counselling companies and how many of them have arranged deals with creditors and are not actually working in YOUR best interest.

Debt reduction is front and center on many Canadians’ minds right now with soaring household debt levels – it doesn’t have to be this way – call our experienced credit counselors such as Avineet Kalsey right now. You don’t need to struggle with debt, BSCC can help reduce your debt by over 50%-90% RIGHT NOW – call us today at 1-866-790-8984 – its free!

or Visit:

Business Solutions & Credit Counselling Services

Surrey/Vancouver office:
12033 92A Ave #205 Surrey, BC V3V 4B8
Tel: 604-951-8984
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Toronto Office:
#43 – 8500 Torbram Road
Brampton, ON L6T 5C6
Tel: 905-789-8984
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Calgary Office:
#210-3132 26 Street NE
Calgary, Alberta T1Y 6Z1
Tel: 403-714-8984

Edmonton Office:
Tel: 780-716-8984

Abbotsford Office:
#1A – 2497 Clearbrook Road
Abbotsford, BC V2T 2Y3
Tel: 604-951-8984
or Nationwide call: 1-866-790-8984

http://www.bscc.ca/
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Don’t spend another year racking up unnecessary debt and dig yourself deeper into an unrecoverable situation – we can help! You can avoid going into bankruptcy – it’s a negative mark on your credit and can last for 7-10 years – where a neutral credit counseling notation is REMOVED once someone completes the program. You really can turn your financial life around quickly – just call us and receive a free evaluation of your situation with some helpful advice and absolutely no obligation to take any action if you don’t wish to.

Remember – you DO NOT (and in a lot of cases, SHOULD NOT) always have to go into bankruptcy – we can share valuable information about your options that your bank or other credit counseling companies may not be willing to share with you – because it’s not in their best interest! We work on YOUR behalf, and thus ensure that you receive the very best information for your specific situation. Contact us today at BSCC for a free consultation about your finances – 2018 can be your year that you begin on the journey to finally becoming debt free!

For over a decade, the professionals at Business Solutions and Credit Counselling Services (BSCC), a registered, government-approved credit counseling firm, has assisted hundreds of thousands of consumers throughout Canada to avoid declaring bankruptcy, prepare a consumer proposal, rebuild their credit rating, and pay off their excessive charge card debt. These are clients who were once struggling to manage excessive debt and financial obligations. We work with each client individually, designing manageable, realistic programs to relieve their financial burden and stress.

For more information about using effective debt counseling nationwide wherever you live in Canada – and how to avoid bankruptcy and becoming debt free from high credit card debt or even business bankruptcies, please visit us at http://www.bscc.ca or call 1-866-790-8984 today! We have credit counseling offices in Toronto, Vancouver (Surrey), Calgary, Edmonton, and Abbotsford.

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In the following video Nicolette explains Debt Consolidation

Debt Consolidation Loans For Bad Credit

If you have debt then you must have received letters in the mail from companies telling you how they can do debt consolidation for you and save you a ton of money. So before you jump the gun in excitement, watch this video completely to understand whether it’s a real debt consolidation firm, a debt settlement firm or some scammy loan shark company trying to trap you into massive debt repayment program. By the time you’re done with this video you will know how you can do all of the debt consolidation on your own and not have to pay any company to do it for you. In this video we will talk about what is

Debt Consolidation,
Different way to consolidate debt,
What are credit counseling agencies,
How to create a debt management plan,
Benefits of credit counseling agencies and
Pros and Cons of Debt Consolidation.

#debtconsolidation #debtfree #millenialmoney

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Debt Review Fees Under the Microscope
In this series we are looking at Debt Review pitfalls in South Africa and what they charge for making debt review payments. Looking at debt counselling Fees in South Africa 2023.
We are on a quest to get you out of debt in South Africa.
Which will also highlight some of the worst practices by debt review companies in south africa.

@DebtSafeSA
@accessbanksouthafrica
@firstnationalbankgh3729
@AbsaBankLtd
@BidvestBank
@bankzero8902
@TheCapitecBank
@nedbank
@StandardBankGroup
@standardbanksa
@investec
@TymeBankza ?

Former Treasury Secretary Lawrence Summers says the Federal Reserve may need to get involved in fiscal policy and weigh in on the US government’s $33.5 debt mountain because of its implications for interest rates. Summers, a Harvard University professor and paid contributor to Bloomberg TV, speaks on “Wall Street Week” with David Westin.

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