Debt counselling is a debt-relief programme designed to assist people who are over-indebted or struggling to pay their debt instalments. However, not many people are taking advantage of this programme because they’re not well informed about the benefits thereof.
So, how do you know if you should consider applying for debt counselling? DebtBusters has compiled a number of questions to assist you. If your answer is ‘yes’ to one or more of these questions, it may be time to apply for debt counselling.
- Is your debt-to-income (DTI) ratio more than 36%? Hint: divide all your debt by your income and multiply by 100 to get your answer.
- Do you run out of cash before payday?
- Do you borrow money to pay off your debt?
- Do you use your credit cards to buy groceries?
- Do you borrow money to pay your monthly expenses?
- Have you tried to apply for a consolidation loan?
- Do you have judgements against your name?
- Are you receiving letters of demand (also known as Section 129) from your creditors?
- Are you behind on one or more of your monthly payments?
- Are you borrowing from your savings?
- Do you want to sell your assets to pay off your debt?
- Have you ever been turned down after applying for a personal loan?
- Have you maxed out your overdraft?
- Do you rely on payday loans to get through the month?
- Are you avoiding people because you owe them money?
- Do you rely on family/friends to help you get through the month?
- Do you find yourself thinking about your debt a lot?
- Are you unsure about how much debt you have and who your creditors are?
- Are you behind with your children’s school fees?
- Have you stopped taking calls from private numbers?
- Have you asked your creditors to increase your credit limit?
- Do you find it hard to save after meeting your monthly financial obligations?
- Do you see a lot of returned payments (also known as bounced debit orders) in your bank statements?
- Is your credit score low?
Some people wait until it’s too late to apply for debt counselling. After your creditors have taken legal action against you, there’s little that debt counsellors can do for you.
If you’ve replied yes to one or more of the questions above, contact DebtBusters at [email protected] or call 086 999 0606 and we’ll conduct a free assessment to see how we’re able to free up some cash flow for you.