Debt Relief

Debt Relief

Debt Relief is Available

If you are deep in debt and can no longer meet your monthly financial obligations to your creditors, you are not alone. Millions of South Africans have fallen into the debt trap and do not have the means to pay their monthly instalments. Therefore the government came to the rescue and promulgated the National Credit Act of June 2007 to offer people under financial stress debt relief. There are many misconceptions about the National Credit Act due mainly to a lack of knowledge of the debt review process. Firstly, and most importantly, it is important to note that the process does not eliminate your debt or pay your debt for you. You will still have to repay all your debt but in a way that is more affordable and convenient to you.

There are many people who believe that the process offers debtors an easy way out and that they will immediately become over indebted again at the end of the process. But the debt relief process provides a debtor with a budget eliminating all unnecessary expenditure which helps people learn how to spend more wisely. A person receiving debt counselling will also not be able to enter into any new credit agreements or create new debt during the period of debt review. This will teach people how to live within their means and purchase items without credit. A debt counsellor can also offer additional services such as teaching a person how to save money for high end items and eliminate interest and other service charges that are inherent in credit contracts.

If a person does however become over indebted again after entering the debt review process, the onus will be on them to repay the debt. There is no easy way out of debt, but there are many ways in which debt counselling can offer you solutions to your debt problems.

To find out more about debt relief and eliminate some of your misconceptions, please contact us.

By | 2018-05-22T10:06:20+02:00 May 18th, 2018|Uncategorized|0 Comments

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