Want to consolidate your debt into one single repayment?
There are a few options to choose from when looking to consolidate your debt. Some people look to get a consolidation loan but the interest rates can be high meaning you pay off more for your debt overall. If you are already behind on your repayments you are unlikely to qualify for a loan to consolidate your debts and you may want to explore debt review.
Why debt review is the best way
If you are over-indebted and struggling to pay off your debts as per your agreement with your credit providers, then the debt review process might be the best way for you. Particularly if you are worried about repossession of your assets. You only have one reduced payment to worry about each month and as this is a legal process your assets are protected as soon as you sign up.
Debt review provides you with the following benefits:
- You can reduce your repayments by up to 50%. This is because your debt counsellor will negotiate lower interest rates with your creditors meaning you pay less for your debt
- Your assets cannot be repossessed and will be protected. This is because under the NCA (National credit Act) your assets are protected whilst you are under debt review.
- Creditors cannot proceed with legal action and continue to hassle you for payment. All creditors are managed by your debt counsellor on your behalf.
- Sleepless nights become a thing of the past and you will feel relief immediately.
- After the process has been completed, you receive a clearance certificate and any negative credit bureau information is removed. You will be back in control of your finances and can enjoy a new, stress-free, debt-free life.
What about debt consolidation
Debt consolidation is a type of refinancing. You take out a loan from the debt consolidation company to pay off all your debts. If you do qualify, the loan is usually offered at a high-interest rate. And you cannot be over-indebted at the time of application. This process is for people who are struggling to make their monthly loan repayments. Beware of hidden costs. They always bite in the end.
For more information on debt review and consolidation as well as other debt management options, check out this article.
Contact us if you are ready to take the step towards financial freedom.
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