Debt “Counseling” or “Consolidation” Services? We provide both!
Depending on your needs and level of debt
We deal with your credit providers
to lower your interest charges and come up with a monthly payment plan
Reduce the interest and monthly charges on your debts!
Consolidate your debts into your home loan
Over 6 Million South African consumers are struggling to meet their monthly debt obligations. From those people needing that little extra at the end of the month, right the way through to those who are paying a large portion of their monthly income back in interest, we have the right solution for you.
Make an enquiry today for no obligation advice on how to become debt free. We have a solution that will get you back on track!
Here are your options:
Option 1: Debt Counseling:
- What is it? In 2005 the S.A. Government passed an act to allow consumers to seek assistance from a debt counselor – that’s where we come in. As a debt counselor we evaluate your financial situation and facilitate a debt re-arrangement plan. We’ll negotiate with your creditors to adjust your repayment period, lower your interest rate on your bills and waive off late fees.
- Who is it for? If your expenses (living and debt servicing) are higher than your income - debt counseling could be for you. This is especially true if creditors have been hounding you for payments. The process itself gives you protection against your lenders until you are ready to face them.
- What we can do for you:
- We will review your situation and assess your level of debt
- Then work out a repayment plan, proposing smaller payments over a longer period or postponing payments – this will be submitted to your creditors.
- Your monthly payments will be combined into a single monthly payment and paid to a distribution agency, which will then pay your creditors on your behalf.
- We will provide you with an after-care service until you are debt free and will assist you in gaining the necessary skills to create a stable income when you are debt free.
- A debt counselor could lower your monthly payments by as much as 40%!
OPTION 2: Debt Consolidation:
While interest rates on your credit cards and personal loans can be as high as 36%, while interest rates on your home loan could reach as low as 9%.
- What is it? Debt Consolidation is putting all your debts in one place, allowing you to save money by paying a lower interest rate on that debt. For example, you group your credit card debt, overdrafts, store cards, short term loans and vehicle finance into your mortgage – with huge savings on interest.
- Who is it for? You need to have a home loan and at least R40, 000 equity in your bond in order to consolidate (in other words a R40, 000 difference between the value of your bond and amount owed). We can then make arrangements with your bank to pay off your high-interest loans and debts.
- What we can do for you:
- Save on interest and monthly account fees: by paying off all your debt in one place you pay interest at a lower rate, and will only have one set of account fees to pay.
- Have everything taken care of: we will pay off the debt for you and negotiate with the banks through our own channels. It's important to note that an individual can't go through such a process without the help of a debt consolidation expert.
Fees and Charges on Debt Consolidation
There are some fees and charges involved, such as the new banks initiation fee and the new bond registration fee, however both of these will normally be insignificant to the savings you will make by consolidating. Our partners will give you all these costs and fees once they have approvals back from the lenders.
Information provided is for guidance only, please read your policy documents before taking out insurance.
Shop around for the best debt consolidation options before you make your choice.