The most popular question consumers ask about debt counselling ever since it was introduced by the NCA in 2007 is: Is debt counselling a good idea? The truth is that debt counselling is the best option for over-indebted consumers. It has saved many households from, bankruptcy and losing their assets.
How does it work?
If you are over-indebted and cannot afford your repayments, you can apply to go under debt review. Your debt counsellor will negotiate with your creditors to reduce your monthly debt repayment as well as the interest rate. This results in a more affordable monthly repayment that will pay off your debt
You are now on the path to financial freedom, NO MORE creditors hassling you! You can feel safe as your assets cannot be repossessed during this process. Once your debt is repaid you are declared debt-free and have a clear credit record.
Here’s what one of our clients had to say:
You may not think debt counselling is a good idea at first due to not being able to have access to credit, but it will get you out of your tough situation and help you to take control of your finances. Meerkat helps many of its clients to gain financial freedom. Here is a story of how debt counselling helped one of our clients. Debt counselling is a very personal journey so names will not be used.
“There are several reasons that contributed to our indebtedness. This accumulated of a long period of time.
Two years ago my husband fell terribly ill and could not work for seven months. When working as a contractor, the “no work no pay” rule applies. We had to make sure the medical accounts are paid because we needed him to be in constant medical care until he became healthy again. The result of this was that there was only one salary to cover the normal accounts as well as additional medical accounts. All our accounts fell behind except for the bond and the cars.
From August 2017 he started working again and we tried to catch up on all the accounts.
He used to work in the Northern Cape and Western Cape but now only works one contract in Cape town. This contributed to the money he received being less. There were no lump sums available to cover any debt
I also have to pay for my kids at school. The eldest goes to high school which comes with its own set of demands. The youngest will go to primary school next year and I’ll need to find money for registration fees, stationary and a new uniform will be needed. Water, electricity, rates and taxes have tripled over the past two years. Our normal day to day expenses have increased so much, it makes the running of a household so difficult. We have moved our kids from private schooling to public schooling to try and save money.
We have put several basic measures in place to save water and electricity. Alternative gas usage has also become so expensive and can no longer be maintained. We are seeking cheaper insurances to make the money stretch. My husband saves R1200 per month because he travels by train now. Yet it does not prove to be enough saving for our household. The debt review process was the only option we had to keep our assets that we have accumulated over years of hard work. Our monthly repayment has been reduced as well as the interest rates and we finally have some space to breathe. We can’t thank Meerkat enough for the help they have given us and would highly recommend them to anyone who finds themselves in a similar position.
Our client’s story is just one of thousands we have helped. There are many South Africans in the same position. If this is you, contact us today and get started on the journey to financial freedom.