Debt Counselling
5 Tips To Avoid and Overcome Debt Problems
5 Tips From The NCR To Avoid and Overcome Debt Problems
As at end of December 2010 the number of consumers with impaired records stands at about 8.6 million.
To aid consumers, the National Credit Regulator has offered 5 excellent tips to avoid over indebtedness.
- Always Act On A Letter Of Demand
- Seek Help From A Debt Counsellor
- Never Skip Your Payments
- Prioritise your house loan
- Start saving today
When you receive a letter of demand, don’t ignore it!
Contact your creditors and explain your situation. Remember creditors would rather receive some payments, than none at all.
If you cannot afford your monthly repayments, approach your credit providers and negotiate lower payments.
Debt Counsellors help consumers to manage and restructure their debts.
Act now, do not wait until it is too late!
Continue making payments, even when you are under debt counselling
Pay as much as you can prevent the debt from escalating
If you do not pay, you could lose your house or your car!
Never skip a mortgage payment, even when you are under debt couselling
Pay as much as you can
Be careful – you can lose your house
Save some money every month
When you no longer have debts increase your monthly savings
Do a budget and stick to it!
How To Use Your Bond To Consolidate Your Debt
Use Your Bond To Consolidate Your Debt
If you have been blacklisted by the South African credit bureaus and are unable to get any kind of credit, then perhaps debt consolidation is for you. You can then proceed to contact a debt consolidation company and apply for a secured loan.
Even though you have a mark against your credit rating the consolidation company will provide you with a loan when banks won’t, as long as you use your property as security against it.
What this means is that your home will once again be held as collateral for such a loan. However, the debt consolidation company will then pay up all of your accounts and within six months to a year your credit rating will be perfect again.
Why Put My House on The Line?
If you are in serious debt and have nowhere to turn then debt consolidation is the best thing that you can do for yourself. A secured loan will allow you to get more money for less interest. In the long run, if you consistently pay your one account, it will solve all of your credit and debt problems.
Using your largest fixed asset to consolidate your loans might sound like a risky business, but all in all it’s a wise long term decision and will contribute to your financial health in the future.
Once your consolidation loan is repaid you will finally be debt free. In the meantime your payments will decrease and you can enjoy the peace of mind that comes with efficient finance management. As long as you stick to your monthly payments the chances of losing your property are slim. Be sure to find a reputable debt consolidation and mortgage refinance company to professionally handle your debts.
Most debt review applicants are white individuals
Debt Counselling News:
A survey completed by one of the largest debt counselling companies in South Africa has shown that the majority of debt review applications are being completed by white males.
Of the 10000 applicants surveys by Consumer Assist, almost two thirds were men and a large majority of them were white.
Only about 30% of the men were black, and just over 20% of all males were coloured.
Education is still a major hurdle in getting black south africans to understand the benefits of the debt review process.
Andre Snyman, CEO of Consumer Assist, explained that White people are more likely to seek help to overcome debt problems while, black consumers would often shy away from debt counselling when they discovered they could not incur more debt until their debts were paid.