When financial troubles strike, it can be undoubtedly confusing for the consumer to find out what financial help there is. Getting financial assistance during the tough times is important to aid in fixing the problem effectively. It is vital to know what financial help there is in case you are caught up in financial debt.
There is a multitude of financial help options available to consumers in South Africa including debt consolidation and debt counselling. Under The National Credit Act consumers no longer need to fear their creditors since they have to opportunity to negotiate with them through the intervention of a financial help advisor practising as a debt counsellor.
Before debt counselling becomes an option, consumers should investigate whether or not their debts can be consolidated. As a financial help remedy debt consolidation involves procuring a loan to cover existing debts. This effectively reduces all debt payment to one easy to manage payment on the loan as opposed to a myriad of smaller payments on various debts. The amount spent on debt payment can also be reduced as the loan can have lower interest rates and be paid off over a longer period of time.
However if debt consolidation is not an option consumers are in the fortunate position to be able to apply for debt counselling. By doing so consumers are taking control of their over-indebtedness by appointing a debt counsellor to restructure their budget and negotiate with creditors on their behalf on order to reduce payment and put an end to creditor notices.
The benefit of engaging these services is that once creditors have been notified that the consumer is now undergoing debt counselling they can no longer take legal action or seize the assets of the consumer. This means that consumers have the breathing space to avoid lengthy legal battles whilst still making a dent in their debts.
Consumers in South Africa are privileged to have a legal system that is looking at over-indebtedness in a new light by finding ways to protect and create consumer rights.