Debt review remains the best solution for getting out of debt
Debt review is by far the best way to hold on to your assets and, at the same time, repay debts in smaller more affordable payments. Usually stretched out over a longer period of time than the original loan agreement, debt review is a legally binding process that helps deeply indebted consumers get out from under their debt load without the fear that debt collectors are going to try and seize their assets such as homes and motor vehicles. Debt Rescue has helped thousands of consumers repay their debts to the point where they have fully rehabilitated themselves and re-established solid credit records for themselves. We are in the midst of an exceptionally difficult economic cycle where the prices of everything are skyrocketing, with salaries and wages in many cases remaining static. It is imperative that all consumers work out a budget for themselves and then stick to it rigorously cutting out as much of the fat as possible. Do not try and keep up with the Joneses. It is possible to be stylish without necessarily paying top prices for the latest labels. Credit serves a very real purpose in the modern world but then it has to be managed. Using credit cards and store cards and then making only the minimum repayments is a very bad idea. Borrowing money in the form of high-interest-bearing unsecured loans is an equally bad idea and needs to be avoided at all costs.
Smart Debt Relief & Review Measures
System allows access to decreased interest rates, fee waivers and extension of the credit agreement term.
Consumer can settle account/s at a discount (as offered by the bank.)
Consumer can consolidate his/her arrears credit acccounts into a loan at lower interest.
Restructure payment terms or reschedule payment of arrears in installments.
Bank Assisted Sales
Consumer can sell assets prior to the execution of the assets to a willing buyer.
Consumer can enter into a voluntary payment arrangement with the bank.
Struggling With Debt Repayments?
Here’s Why You Should Consider Debt Counselling. According to statistics, South Africans spend an unbelievable 76% of our monthly income on repaying debt. This leaves a mere 24% of our earnings for other expenses. Life is getting more expensive every month with rising petrol and food prices, and it’s clear that South Africa is in a debt dilemma. It comes to no surprise with the amount of debt South Africans are in that we’re failing to pay it back. Unfortunately, in order to keep up a certain lifestyle, people tend to take out loan after loan, which then becomes unmanageable and before long they start missing payments. Not knowing what to do, people avoid phone calls from lenders, legal action is taken, and they are ultimately blacklisted. If this is you, considering Debt Counselling might benefit you greatly. The Advantages
One of the primary benefits is that you don’t have to negotiate with the creditors yourself. A debt counsellor will do the negotiating on your behalf and settle on a repayment you can afford. By going this route, debt counsellors advise the credit bureaus that you have applied for debt review and your profile will be updated. This means you will no longer have to deal will creditors phoning you non-stop and pursuing you with summons and judgements, which negatively affect your credit rating.
The Consequences You will have to pay a once-off upfront fee as well as monthly after-care fees. These fees are included within your monthly instalment, meaning if you can afford a certain amount, these fees will be calculated within the agreed amount. So no extra fees after you have agreed on an amount. Once you start with debt review, it isn’t easy to withdraw, and you’ll need a court order stating you are no longer over-indebted or you’ll be required to settle all outstanding debt. However, still very possible.
Clients can’t apply for any further debt while under debt review, so they won’t be able to use any of their credit cards, store cards or overdraft facilities. But this also aids in the fact of debt rehabilitation, being taught again to work with your cash flow and not to be used to swipe a credit card or other credit facility anymore. Also, still a benefit as well seeing that it was the habit of swiping that put you in trouble in the first place.
What alternatives are available other than debt review? An alternative is to change your lifestyle, but it’s one that customers are often not willing to consider. By selling additional transferable assets, cutting down on luxury spending, as well as budgeting effectively, you will be able to pay off some debt if not all in a short timeframe. This
will also help prevent the same financial problems from occurring in the future. In most cases, going through debt review is a practical way of getting back control of your
finances. Which ever option you choose, remember that getting out of debt is never a short term endeavour and will need total commitment to succeed.
Big R Solutions Debt Counsellors
The Big R Solutions Debt Counsellors started its business operations in 2008, after the National Credit Act of 2005 was passed in 2005 and came into effect in 2007. It was started by Saubrey Tshabalala and is now 9 years old. At one stage, our company had about 140 clients. Most of these clients were problematic as the process requires all parties involved to work together to make the process successful. We had to let the clients go as we only had 3 quality clients. We have since built up to 110 clients and 99% of our clients are now paying according to their restructuring plan. This showing commitment from our clients to their obligations. For the success of this process it requires the 3 parties involved (the client, the debt counsellor and the creditors) to work in unison leading to the eventual satisfaction of all parties.
- We’ve saved our clients from losing their cars, houses
- We even have a 90% rate of obtaining court orders for our clients.
- 99% of our clients are paying according to the restructured plan, on time and well.
- We have a strong and experienced legal team which helps us in obtaining these court orders for our clients.
- We also have a strong admin department which is run by a company of debt counselors who also do administration work for companies such as ours.
- After you have paid off all your debts on the unsecure credit facilities, your car and you are up to date with your payments on your bond, we then issue you with a clearance and you are as good as new to the credit industry. In the past 3 years, 10% of our clients have been cleared and some of our clients who have been issued with clearances certificates have returned to the credit industry and have bought cars worth over R500,000 and houses worth over R1 million.
(reg no 2013/005499/07 pract no 665)