The advisors review your income and expenses, help you develop a budget, and offer options for debt relief. In order for the debt advisor to be able to track and process all of Sally’s questions, the aftercare fee is 5% from R2000. This professional service is aimed at over-indebted consumers. Payment is due in advance and in full.
Debt counseling or debt assessment is a legal process that aims to help over-indebted South Africans regain control of their finances by restructuring their debts under a legally approved plan.
What are the disadvantages of debt counseling?
Debt advice can help you with your spending habits, improve your cash flow, and cut installments and interest rates by up to 50%. If you think debt settlement is your only option and you need help with this process, choose a reputable debt settlement company. The debt management company or credit advisor reviews their financial situation and then draws up a debt management plan with the debtor and his creditors. However, debt counseling has its own drawbacks, which must be carefully considered before making a decision.
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Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.