Debt Rescue:
To date, there are over 10 million South African who have fallen into arrears on their debt repayments. Every day more and more reckless consumers bury themselves in debt they cannot afford to pay back due to credit from loans and things bought on credit. Debt is quickly becoming a widespread problem, affecting people with diverse incomes and backgrounds.
There are two ways of consolidating your debt, Debt Consolidation and Debt Counselling. The idea behind Debt Consolidation is to consolidate all your high-interest payment into one low monthly payment using equity from a secured loan such as your home loan or vehicle loan, you must have an asset with equity in it in order to lend against it, which is more affordable debt by reducing the interest costs and helping with cash flow. You have to be careful in this situation though because if you don’t make your payments on a regular basis because, you run the risk of losing your home or whatever collateral you have chosen.
Debt Counselling helps consumers who are struggling with payments by reviewing your budget and rearranging the payments which save you money. The debt counsellor will assist you with the redevelopment and lower payments according to what you can afford. If the debt counsellor foresees that you are unable to meet your monthly debt, they will propose a debt reconstruction plan to all your credit providers and make a proposal to the Magistrates Court to re-arrange your debt.
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