How Debt Counselling Works: A Guide to Managing Your Financial Challenges

 

While we all want to be optimistic, we need to be realistic about our finances. Studies show that 36% of South African consumers are in financial distress, concerned about their ability to fully pay off at least one of their existing bills or loans. There's simply no easy way out of financial difficulties, and in some cases, debt counselling in South Africa is the best proactive approach and long-term solution.

 

What is debt counselling in South Africa?

 

Debt counselling in South Africa is a structured process that combines all your debt payments into a single and more manageable monthly amount. While there are costs involved in hiring a debt counsellor, the fees can be as low as 10% of your overall instalment savings over the lifetime of the debt.

 

Your debt counsellor will review all your outstanding payments and work with your creditors to agree on lower repayment amounts and improved terms. This might mean it takes a bit longer to pay off your debts, but it will make things much easier for you in the meantime.

 

Your debt counsellor will also assist you in planning your monthly income to cover both your living costs and debt repayments, making sure you only pay amounts you can afford. During this period, taking on any new debt is not allowed, as it would cancel your debt review.

 

While you’re in debt counselling, your creditors cannot take legal steps against you and must accept the new payment plans. This process ensures you still repay your debts, but it makes managing them simpler and less stressful.

 

How to find reputable debt counselling in South Africa?

 

At FindBetter, our service helps connect people with trusted debt counsellors and loan providers. Users can use our platform to compare different counsellors and select the one that best fits their needs and preferences.

 

Get a free debt review today through this website, and we will match you with a reputable debt counsellor in your area.

Source: https://findbetter.co.za/how-debt-counselling-works-a-guide-to-managing-your-financial-challenges/

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