If your debt is getting out of hand, Debt Counselling can add structure to your financial repayments, while also keeping you safe from potential and damaging legal action. We will develop a repayment proposal and present this to creditors on your behalf. As long as you honour this monthly repayment, you’ll be on the path to a debt free future, and also cannot become blacklisted.
More and more South African’s are overcome by debt, with many paying back more than 70% of their monthly earnings on debt. This is no way to live and can cause families great stress, while also taking a toll of the mental and physical health of individuals who are affected. With the constant fear of losing their assets or home due to late or unmade payments, consumers feel overwhelmed and cannot see the light at the end of the tunnel, sometimes becoming depressed. This is where Debt Express provides relief and assistance to better your circumstances.
At Debt Express, our experienced consultants are capable of assisting clients who are based anywhere in South Africa, either over the phone or online. This makes it easy for anyone who needs it to benefit from our trusted Debt Counselling services. Our clients are presented with a reputable Debt Counselling service, provided by Debt Counsellors who are accredited by the National Credit Regulator (NCR). All of your debt payments by you are overseen by a Payment Distribution Agency, both during the collection and then the distribution phase.
During Debt Counselling, your outstanding debt is prevented from accumulating far beyond the figure it initially was, which is referred to as the deplume rule. What this means is that the total of all fees (including interest and legal costs) won’t be able to exceed the capital which was available when your account defaulted.
Your credit providers will be informed that you are under Debt Counselling and that they should stop calling to demand payments. If you should hear from any creditors, our team at Debt Express will take control of the situation by contacting them back to resolve the situation effectively and without your involvement.
How Debt Counselling Alleviates Your Debt Issues
Once you have taken the smart step of applying for Debt Counselling to combat your debt related stress, you will begin to work towards a future that is not controlled by debt. This responsible decision can drastically improve your life.
Each of our Debt Counsellors are committed to keeping you safe from losing your assets, car or home. You will have peace of mind while we manage the entire process, also considering your rights and living requirements. By honouring the new debt repayment that we have developed for you based on your monthly financial capabilities, the legal Debt Review process will protect you fully.
Myths about Debt Counselling:
- The balance owed on my debts will increase
- Fees and interest rates are fixed
- Debt Review is a permanent process and once I’ve applied for it, I will remain in Debt Review
Facts about Debt Counselling:
- Most short-term debt is paid back within 32 months, and the goal should be to pay back what you owe within 60 months
- Your affordability and monthly budget determines the new monthly payments made to your creditors. In some cases, these reduced rates can also lower the period of repayment.
- Once you have successfully paid back your debt and improved your finances, one of our Debt Counsellors will issue you with a Debt Clearance Certificate.
How Debt Review will help you:
- Your debt becomes less with each payment
- As long as you pay, you’re protected
- Reduced interest rates and monthly fees
- Becoming debt free is worth it
What you should know upfront:
- You can’t accumulate more debt while under Debt Review
- There is no payment holiday
- It’s harder to pay back debt than to make debt
- You should follow through till the end and not give up halfway through the process
It’s better to Avoid Becoming Over-Indebted
If you’re living beyond your financial means, you may need to adjust your lifestyle to accommodate your budget. A monthly budget that aligns with your affordability is a good start, as it prevents you from spending money unnecessarily. Cut back on expenses that are not essential and figure out where you’re overspending – you may be surprised when you realize where your money goes every month. Once you are aware of how far your money can get you and have made the concessions needed, you may not need to incur debt to afford to live comfortably.
Possible Adjustments to your Budget can mean eliminating expenses like these listed:
- Alcohol and Tobacco Products
- Memberships to Clubs and Gyms
- Expensive cell phone and internet contracts
- Outings and other forms of Entertainment
- Gambling
- Satellite TV or similar subscriptions
- Travel costs (petrol and taxis can be expensive)
- Loans of any kind
Figure out where you can cut out on these items, making more room in your budget for the essential expenses that add value to your life, and the lives of your loved ones. Once you’ve freed up room in your budget, any extra cash can go towards paying more towards accounts, which will reduce your debt and improve your quality of life.