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Debt Counselling in South Africa Explained

There are many reasons why Debt Review is important but the real benefit of getting debt review and debt counselling services is that it can go a long way in helping protect your assets from repossession by the credit provider. A disadvantage, however, is that you cannot apply for credit while under debt review and the only way to exit the process is by settling all your outstanding debts. We are registered Debt Counsellors who assist with Debt Counselling in South Africa

Nevertheless, if we look at from an objective point of view, we will see that it’s better to be inconvenienced for a few moments in the short term if the long term benefits are worth it which makes it a wise choice to go for Debt Review despite the fact that you won’t be able to apply for credit while this process is being undertaken.

The first question most people ask when they see their debt payments inflating is whether or not they might need debt counseling. At first thought, most people will put aside this thought which is bad because by looking at South Africa’s economic climate, considering statistics like employment rate and average income, particularly the GDP per capita, you will see that by avoiding debt review and looking on as your debt payments inflate, you will end up putting yourself in a very exposed situation that might cause you to lose very valuable items and roll back your progress by months, if not years.

As you can see, going for debt review and counseling is not only important, it is key and something that should be taken seriously if you don’t want your debt to wipe you. Before looking at some of the benefits of debt review and counseling, let us look briefly and explore some ways in which debt affects you.

How Debt Affects You

Legal Action

The most common way in which debt will affect you especially when it becomes unmanageable and you start missing on payments is that your creditors might take legal action. Legal action may result in you either losing your assets or being blacklisted by financial institutions; sometimes both can happen as well.

Besides the above, sometimes creditors will push for more adverse measures which may include wage garnishment, eviction, and foreclosures.

Emotional Distress before applying for debt counselling

As much as there is a financial side to debt, there is also an emotional side to it. From the above point, you can see when debt gets out of hand, it has the potential to affect every part of your life and can turn it upside-down in a matter of minutes. This can sometimes result in emotional distress dues to the pressure and under more adverse conditions, such situations can even lead to severe depression. If you value your happiness, then you shouldn’t let things get out of hand before seeking debt counseling services.

Benefits of Debt Counselling in South Africa

Now that we’ve gone over how an inflated, uncontrollable debt can affect you, it’s now time to look at some of the benefits of Debt Review and Counselling Services and in the process, inexplicably bringing out more reasons on why you should consider getting such services.

1. You Debt Payments will be reduced

This is inevitably the greatest benefit of Debt Counselling. When you get reviewed for Debt, all your debt payments will be reviewed which will likely result in the monthly installment payments being reviewed downwards. The interest rates and service fees will also be looked at and might be reduced for the entire repayment period.

2. Debt Consolidation.

One of the most hemorrhaging effects of debt result from having to pay multiple creditors who all have different interest rates from a single paycheck which is ineffective and loses you money. Through debt review and counseling, your debts will be consolidated into one and you can pay it in one affordable installment helping you save money and recover.

3. Legal Protection

Without any sort of legal protection, credit providers can be ruthless in trying to get back what they are owed which often results in people unfairly losing assets to them. However, debt counseling and review will offer you legal protection ensuring that your most important assets, especially your home and car are safe from repossession.

4. Be able to meet your vital expenses

There is nothing as disheartening as earning a lot of money but not being able to meet your most important needs due to debt repayments. Debt counseling and review will save you money making it possible for you to manage your living expenses whilst settling your debt at the same time ensuring that one does not fall victim to the other.

5. Take Control of your finances by applying for debt counselling in South Africa

In the introduction, we had highlighted the fact that you won’t be able to get new credit while under review as a disadvantage. Well, it might be an advantage as it prevents you from entering into further debt resulting in more financial difficulties. Going for debt review will give you full control on your finances as you will know how much you need every month resulting in you eliminating the need for more creditors.

To enjoy the above benefits, you need to make a decision and in making that decision, you need to work with professionals who are experienced enough to help you get your finances in order. The professional you work with should be a registered NCR Debt Counselling Company as this ensures that you are working with people who know what they are doing.

If you are worried about your current financial quagmire and wondering how you can take control once more and claim back your future, simply contact us today for a free assessment.