Neck deep in debt? Don’t worry, you’re not alone! Did you know that there are currently millions of South Africans who are in the very same boat as you? In fact, you’ll be amazed to learn that not only are South Africans struggling to pay their debts, but many are also spending up to 76% of their monthly income just on their debts repayments alone. What’s more is that each month, over 15 000 administration orders are issued and over 6 000 vehicles and over 2 000 homes are repossessed.

Ever considered debt counselling? Passed by Parliament in 2006, debt counselling is an effective credit score management solution designed to address reckless lending and promote responsible credit granting, as well as help the over-indebted meet their monthly commitments, all while suiting their financial position. A saving grace to millions of over-indebted South Africans, there are currently over 110 000 South African consumers in debt counselling. If you’re unsure if this is the right solution for you, then keep reading to learn about some of its many benefits.

#1 You Pay One Reduced, Affordable Instalment Each Month

A financial rescue that will cost you far less than that of administration, bankruptcy, repossession, foreclosure and sequestration – debt counselling is and has always been 100% successful. One of the key benefits of debt counselling is to negotiate to reduce the minimum amount payable by extending your repayment term. In fact, debt counselling can reduce your debt by up to 60%. What’s more, not only will your debt counsellors negotiate ONE reduced payment each month until you’ve paid off all your debt, but they will also negotiate to reduce your interest rates by up to 100%.

#2 You Will Fall Under the Protection of the National Credit Act

It’s extremely stressful to find yourself on the wrong side of debt collecting agencies, but what’s even more stressful is when you’re made to feel like a criminal by your creditors, just because you’ve fallen behind on your repayments. A financial life boat that brings many benefits to the over-indebted consumer, once you’ve entered the debt counselling process, you will immediately fall under the protection of the National Credit Act.

What this means is that all those really annoying creditors will not be allowed to contact you or send intimidating letters that demand payment and threaten legal action. In fact, any already threatened legal action, such as judgements, garnishee orders, blacklisting, sequestration and foreclosure, will immediately fall away. But, possibly the greatest benefit of debt counselling is that it affords you the freedom to start all over again with a clean credit record.

Living with debt today is certainly no joke, and if you’re someone who has fallen behind on your monthly retail accounts, school fees, bond or car payments, believe us when we say that it’s not going to get any easier. At No More Debt, we’ve helped over 10 000 South Africans through our debt counselling services, and can help you through yours. To learn more about debt counselling, chat to one of our super-friendly debt counsellors today.