Debt consolidation is a loan that you would take out to consolidate several smaller loans into one loan. Basically, paying off the balances of all the other loans. The goal of a consolidation loan is to reduce monthly instalments usually by means of lower interest rates and extended payment terms.
28 November 2012
Monday 15TH March marks World Consumer Rights day as The NCR embarks on a nationwide public awareness campaign, including roadshows and exhibitions, to educate the South African consumer.
Luke Hirst, MD of Debt experts DebtBusters says ‘There is a huge lack of financial training and budgeting in schools, universities and the workplace. This initiative should not only be promoted by The NCR, but also credit providers, debt counsellors and government. It is only through a combined effort that we will achieve results’
With over 10m consumers in arrears on their credit, they need to be educated on debt management, as so many are still unaware on the options available to them including debt counselling, debt management, debt consolidation and sequestration. The first step in being financially stable is a budget, and too often consumers are unaware of this.’
The NCR believes that this day provides an excellent opportunity for all the stakeholders to come together and educate the consumer. The consumer is urged to not shy away when experiencing financial difficulties, ‘understanding your rights and responsibilities can help you manage your debt and live within your means’ says Peter Setou, Senior manager of Education and strategy of The NCR.
Hirst continues, ‘We at DebtBusters are committed to educating not only the consumer, but all players in the industry, and have embarked on a major training initiative nationally by setting up workshops for South African corporations, including the big banks. We have been successful so far, and have trained at least 400 bank employees on Debt Review and the process. Giving them a view on how Debt Counselling done correctly is an incredibly effective tool in reducing over-indebted consumers and increasing collections for the credit providers‘