South Africa has a number of debt solutions in place to assist over-indebted consumers. The debt solutions include: Debt Review, Administration and Sequestration. Debt Sage at present offers Debt Review.
Below we discuss the debt solutions in brief.
Debt review is an application by a consumer to a debt counsellor to investigate the finances of the consumer. Debt review process has a number of competitive advantages as a debt solution relative to other debt solutions. Debt Sage expert debt counsellors negotiate with your credit providers so that you pay reduced monthly instalments that you can afford. We negotiate that you pay reduced interest rates. We consolidate all your debt into one easy monthly payment that pays your debt. You can become debt free without losing your assets i.e. home and motor vehicle. You avoid being blacklisted and avoid large legal costs when compared to all other debt solutions. The process is less costly and easy to implement.
Administration is a legal process whereby the court appoints an Administrator to extend the repayment terms. The disadvantage of this debt solution is that the process is lengthy and takes much longer than debt review. Your employers will be advised as payments are made directly from your salary. Payments are only distributed every 3 months. This solution is limited only to /applicable for debts that total less than R50 000.
Sequestration is legal process whereby individuals’ current assets are sold in order to pay off or lessen their current debt. The court will appoint someone to manage the consumer’s finances. The consumer is forced to sell all their personal belongings / assets which include home, motor vehicle, furniture etc. Legal costs that a client faces are exorbitant and can be at least R20 000.
Contact our Debt Counselling Experts in Johannesburg today, to review your case and see how we can help you with our Debt Review Services.