Debt Consolidation in South Africa and the Debt Review Process
There are many companies that offer debt
consolidation in South Africa and there are various ways in which you can go about accessing these services. Debt consolidation basically means adding a multitude of smaller debts together and offering the total amount it to a credit provider in exchange for a lower interest rate or a more favourable repayment period. The credit provider will then settle your debt with your current creditors and you will then have one monthly instalment to pay. It is important to note that this will not solve your debt but merely transfer it from one credit provider to another in exchange for more favourable terms. Make sure that you research all debt consolidation companies well to ensure that you receive the lowest interest rate possible.
The debt review process offers you a different form of debt consolidation in South Africa. Once you have been accepted for debt review, a debt counsellor will contact all your credit providers and negotiate lower interest rates and monthly repayments. They will then submit an adjusted repayment schedule to the National Credit Agency to whom you will pay one monthly instalment. This instalment will then be redistributed amongst your various creditors ensuring that each receives an amount every month. Unlike debt consolidation, you still owe each of your creditors and not just one institution.
This debt review process is designed to help over indebted South Africans who cannot meet their monthly financial obligations to repay their debt as quickly and conveniently as possible. The negotiation of better interest rates and lower monthly instalments will ensure that they are able to afford their monthly instalments to the National Credit Agency. So if you are struggling to make your monthly repayments and keep getting further and further into debt, contact a debt counsellor.
To find out more about debt consolidation in South Africa as well as the benefits and advantages of entering the debt review process, please contact us.
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