A South African consumer approached DebtBusters and asked the following question about debt consolidation:
I would like to apply for debt consolidation, but I am worried about whether it will be effective in the long run. I am in a financial situation, ridden with debt, which I have never been in before. I owe so much money to my credit providers. I do not know where to begin...
- R25000 for my credit card
- R50000 for a personal loan
- R26000 for my overdraft
- R4300 for my child’s school fees every month.
Will debt consolidation be effective in the long run?
In the current economic environment in which South Africa finds itself, it is not easy to obtain a debt consolidation loan as banks are not willing to lend money to individuals who are over-indebted and /or have defaulted on their current debt repayments.
However, if a credit provider does grant you a debt consolidation loan, they will usually loan you the money with high interest rates attached. High interest rates are not the answer to your situation, as it will make it more difficult for you to pay back your debt.
Need debt counselling or consolidation?
Explore DebtBusters' solutions for reducing your interest rates and unlocking cash.Find out more
Debt counselling is an alternative debt management solution which can assist you with settling your debt. You will be able to pay off your debt, within a period of five years and less, based on the amount of money you can afford to pay towards your debt each month.
DebtBusters excellent financial consultants will assist you with the process, whereby you will be provided with a new monthly budget and given advice on how to stick to it.
DebtBusters will also ensure that arrangements have been organised with your credit providers, so that you are not hassled by your creditors and legal action against your accounts included in the debt counselling process will not proceed. Debt counselling is a remarkable process that will ensure that you become debt free, as well as stress free.
For more assistance with your financial situation, contact DebtBusters today on 0869990606, and a financial consultant will suggest whether your personal financial circumstance will be best mended by debt counselling or debt consolidation.