If you’re among the millions of South Africans struggling with consumer debt, a debt counsellor may be able to help you get your finances back on track.
“We have clients who are looking to buy a home, so they’re trying to improve their credit and have more money available,”. “We have other clients who can’t afford their monthly payments or are seeking assistance with their interest rates.” (However, debt counsellors generally can’t make your loans disappear entirely or negotiate student loan debt or money owed.)
Here’s a look at some of the services offered by Help U Debt Counsellors:
– Debt counselling: Counsellors can typically advise you on credit card debt, home-foreclosure prevention, and in some cases, help you determine if you can afford to buy a home.
“We go through their financial situation, do a budget and create a personalized plan, providing the pros and cons of each solution,”
Some debt counsellors are approved to conduct a bankruptcy pre-filing credit counselling session, which is required before you can officially file for bankruptcy. In Charge, for example, charges a small fee for bankruptcy counselling sessions, but the other counselling options are free.
– Debt management: In a debt management program, the debt counsellor negotiates with each of your creditors to get a lower interest rate and to consolidate your loans. You send a monthly payment to the debt management program NPDA,
All too often, people get in over their heads before seeking out a debt counsellor, which is often at the suggestion of their lender.
“The majority of people wait until it’s too late,”. “It’s a little bit embarrassing to have to call someone that you don’t know and tell them you’re struggling with debt. By the time they do it, it’s really because they’re forced to.”
However, debt counsellors can help even before you find yourself drowning in debt.
“People can call us at any time,”. “We can help them in any facet of their life, even if they don’t have a lot of debt but they just need some guidance.”
If you are working to improve your financial situation, consider these suggestions on how to reduce your debt. Even though you think certain financial options may be out of reach, it may still be a good idea to think of ways to save for retirement, as well.