Debt Counselling Saves Client Over R1mil
Despite thousands applying for debt counselling every month, many still doubt whether the process is actually helping consumers.
Any doubts about the effectiveness of debt counselling and debt consolidation should be put to rest after reading about this story.
Andre Snyman, managing director of Consumer Assist, explains how one of their clients managed to avoid drowning in debt.
“The man was heavily over-indebted and owed R3 004 985, including his bond. He was paying off R24 400 a month but the interest over the 240 months of the debt was going to amount to R2 783 466 alone. In other words over 20 years, he would pay out R5 788 451” Snyman said.
“The debt counsellor restructured his debt after negotiations with creditors. His monthly payment has dropped to R16 890 a month, which means total interest will come down to R1 544 233 and the debt will be reduced to R2 862 133 – including the debt counselling fees.”
“Simply put, debt counselling helped him remove 92 months off his repayments, eliminate R142 852 debt, reduce monthly payments by R7 600 and the biggest saving will come in the R1 239 243 cut from interest rates – enough to buy a really nice second property. And after this process he will have a clean credit record!”
Read more about Debt Counselling and Debt Consolidation
I need to consolidate my debt and det of my parents. I made loans to try and kill the debt at home but got myself in over my head. I do not have a bond though but as my dad is a pensioner it is difficult coping with the bond and arreae electricity bill which we now have to pay through a lawyer. Is there some way I can qualify for a consolidating loan?
i would like to consolidate my debt and secure a homeloan