Had a really difficult financial year and now to top it off, Christmas has just arrived? It’s no joke surviving in today’s difficult financial climate. In fact, thousands of South Africans are teetering on the edge of insolvency. The reality is that life has become hard and expensive and not only has the price of food skyrocketed, but electricity, water, fuel, interest rates and school fees have also left a huge dent in our pockets. We’re venturing into the most expensive time of the year and if you’re struggling before Christmas has even started, then you need to make tackling your debt your New Year’s resolution with debt counselling.

How Debt Counselling Can Help You Become Debt Free

Debt counselling has been met with scepticism for many years and whether it’s the stigma attached to the process, the embarrassment that others will find out or the fact that they won’t have access to credit once in debt counselling – these are all issues that hold the over-indebted back from becoming debt free. The bottom line is that while more than 360 000 over-indebted consumers have successfully used debt counselling to rehabilitate from their debt, there are still many who don’t understand the process of debt counselling. Below we take a quick look at what debt counselling is really all about and how it can throw you a financial lifeline when no one else can.

Protection from Legal Action, Garnishee Orders and Blacklisting

A successful debt rehabilitation programme implemented by the National Credit Act in 2007 – debt counselling is a legal, healthy practice whereby the over-indebted requests to have their debts restructured through the assistance of a registered debt counsellor. Designed to stop creditors from taking any legal action against you, such as repossessions, garnishee orders, blacklisting or judgements – South Africa is the only country in the world that offers consumers this degree of protection.

Debt Counselling Reduces Your Entire Debt and Interest Rates

Once you’ve enrolled in a debt counselling programme, your debt counsellor will analyse your monthly expenses, so they can compile a new workable monthly budget that makes provision for your monthly debt payment, as well as all your living expenses. Working for you and NOT for your creditors, debt counsellors act as a bridge between you and all your creditors. While their key negotiating aim is to reduce the minimum amount payable by extending your repayment terms, not only will you get to make 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%.

While it may feel as though there is no end to your downward spiral, we’re here to tell you that it’s almost 2016, which means that there is no better time to become debt free. If you’re one of the many South Africans who are spending up to 86% of their monthly salary on their debts alone, or you’re currently in danger of legal action and blacklisting, then don’t fight this alone – turn to one of South Africa’s leading debt counselling agencies!