Is your debt keeping you up at night? Are you missing payments and unable to pay for your necessities because you have too much debt? It’s time to find ways to help you free up some cash for your day-to-day expenses. Debt counselling can help you do that.
When you apply for debt counselling, the debt counsellor will assess your finances to determine if you’re over-indebted. The counsellor will take stock of your debt and expenses to see how it correlates with your income.
If your debt/expense-to-income ratio is too high (higher than 43%), it means you’re more vulnerable to changes in your income. For instance, if your children’s school fees increase, it will be hard for you to continue paying your debt.
After ascertaining that you’re indeed a candidate for debt counselling and you successfully enter the debt counselling programme, your counsellor will negotiate lower interest rates on your behalf and will draw up a repayment proposal for your creditors.
This repayment proposal will be a reflection of how much you can afford to pay your creditors considering your financial situation. If they accept, you will pay reduced instalments through a payment distribution agency.
READ MORE: Debt counselling – everything you need to know.
The aim of debt counselling is to ensure your debt doesn’t suffocate you. It’s there to help you finish paying off your debt without feeling overwhelmed. While you’re under debt counselling, you’ll not be allowed to take up any credit; be it credit cards, overdrafts or a personal loan.
If you already had an overdraft account, it’ll be legally closed, since the creditors could be in trouble for reckless lending if they allow you to continue using your credit cards while you’re under debt counselling. This is to ensure that you don’t do more damage to your already weakening credit profile.
Being under debt counselling will give you breathing space you need, ensuring you have enough to pay for your daily necessities and unlocking cash flow to add to your savings.
At DebtBusters, we’ll negotiate with your creditors to reduce your interest to as low as 3% from an average of 21%, dependent on the current balance and the willingness from the lender. We’ll also give you up to five years to repay your debt to make sure your instalments are reduced to an amount you can afford.
We have more than 400 qualified employees who will help you manage your debt and provide a remedy that will free you of the financial burden you’re facing. We’ve assisted thousands of people; we can help you too. Speak to us on 086 999 0606 or at [email protected].