A study by the World Bank found that over 25 million South Africans have debts to lenders and financial institutions. Try to Consolidate Your Debt If you have multiple personal loans, each with its own repayment, you might consider combining it all into one loan with a monthly repayment. When making credit decisions, credit providers evaluate a consumer’s debt portfolio in various ways to determine credit risk. Debt consolidation services are offered by accredited institutions such as banks and financial service providers.
What does it take to qualify for debt relief
Debt settlement companies usually ask you to stop paying your creditors and instead deposit the money into an account they control. A lower annual interest rate means that a larger portion of your monthly payment goes to the client, allowing you to repay your debt more quickly. It can take years and decades, also depending on how much debt you have and what the interest rate is. However, it’s worth it as it can save you thousands of dollars, especially with the help of a professional debt settlement company.
This is a kind of debt relief, as you don’t have to repay more than the agreed settlement amount.
Can I do a debt relief myself?
The last thing you want is to hand over a hefty lump sum, only for the creditor to claim that they never agreed to treat this as a full settlement. Depending on the terms of the payment plan, your contract may be canceled if you miss a single payment. This allows you to say things that may cause problems, such as resetting the collection statute of limitations clock by acknowledging the debt.
References:
- Debt relief: 5 things to do if you’re battling to pay your bills | TransUnion South Africa
- https://debtrescue.co.za/
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.