Debt settlement involves negotiating with creditors and they agree to settle your account for less than you owe. This solution is most often used by consumers facing the following circumstances:
- Who are struggling to pay old outstanding debts? Old outstanding debts can often become difficult to service owing to inflated legal fees, collection fees and interest.
- Who receive a lump sum of money and wish to settle their debt e.g. pension pay-out, retrenchment packages etc.
You settle the debt by way of a discounted settlement amount that is negotiated by one of our debt advisors. The discounted settlement amount is often significantly less than the outstanding balance. This results in significant savings.
We can also negotiate settlement terms, which will allow clients to restructure their debts according to what they can afford.
Benefits of debt settlement
- Save on reduced outstanding balances, interest rates and fees.
- Get relief from overwhelming debt
- Repay your debt in less time
- When paying old debt old debt you are not legally liable for prescribed debt in terms of Prescription Act 68 of 1969. Debt prescribes in the following instances:
- you have not made any payment in respect of the accounts in the last three years and,
- you have not signed any acknowledgement of debt and,
- the creditor provider you owe has failed to take judgment against you for the recovery of the debt.
You may therefore want to speak to us about negotiating reasonable final settlement amounts for your debts. This applies to consumers who are already our clients.