Debt Mediation and what it entails is a topic that frequents more than one should hope. Read more about Debt Mediation and what it entails and how you can benefit from it. A lot of consumers are experiencing financial difficulties due to the Covid 19 Pandemic and other just because the unexpected happened, and suddenly you have a family in crisis.
COVID 19 ASSISTANCE / RELIEF Financial institutions came forward with
Covid 19 relief options. A lot of consumers did not lose their employment or even received a decreased income due to Covid, but still accepted the Covid Relief extended by creditors, BECAUSE it furnished them with a payment break.
WHAT HAPPENED AFTER THE PAYMENT BREAK?Those accounts were in arrears. The payment break was great during the pandemic, BUT the problem was that now those accounts had to be brought up to date again.
Those accounts accumulated added interest and the monthly instalment increased, to accommodate the in arrears amounts due, caused by the Covid 19 relief remedy.
FINANCIAL DIFFICULTIES
Covid 19 and financial discord, are often mentioned in the same sentence, and it is largely due to the above explanation, other times it is just because consumer remuneration were decreased, or they lost their employment.
WHY WILL CONSUMERS CONSIDER DEBT MEDIATION?
When consumers are feeling the pressure of over-indebtedness. They often look at financial solutions like Debt Mediation to decrease the total monthly instalment payments, because their struggling to service their monthly expenses due to decreased remunerations and unemployment.
WHAT IS DEBT MEDIATION?
Debt Mediation is a process which assist consumers to decrease monthly repayment to creditors, by re-negotiating monthly instalments with creditors, when over-indebted.
WHAT DOES SUCH AN ASSESSMENT ENTAIL?When doing an assessment of your financial situation is it important to do the following:
1. What are you currently paying towards debt monthly?
2. Can you afford these installments with your current income?
3. After paying your debts, do you have sufficient disposable income left to service your basic needs to subsist?
4. Are you buying things like groceries and fuel on your credit card because there’s no money left to purchase these items cash?
5. If you decide to continue with Debt Mediation, what instalment payments can you afford?
CAN I DO DEBT MEDIATION MYSELF OR DO I NEED TO APPOINT A PROFESSIONAL TO ASSIST ME WITH IT?It is recommended that you rather contact a
Debt Specialist Company dealing with Debt Mediation daily to ensure the best chances of success.
THE COSTS FOR DEBT MEDIATION?Most of the companies will do the assessment and will furnish you with a quotation. The quotation will be based on the number of creditors and the type of creditors listed.
Some creditors are tougher to negotiate with than others and because some of the creditors won’t answer correspondence timeously, it can be a tedious task to get answers from them.
WHAT IF I’VE ALREADY MADE PAYMENT ARRANGEMENTS, NOW I OPTED TO EMPLOY A DEBT SPECIALIST TO ASSIST ME WITH DEBT MEDIATION?It is recommended that you try and continue with the commitment previously negotiated until such time that the creditor revert with positive feedback, and the newly negotiated payment plan are accepted. There after the new payment arrangement will take effect.
HOW SUCCESSFUL IS DEBT MEDIATION?
The success of the program largely depends on the creditors’ decision to grant you the grace of accepting the re-negotiated instalments. If accounts are up to date and not in arrears it is easier to negotiate payment arrangements, because the creditors can see that you want to pay your bills but due to circumstances beyond your control are unable to service the debt.
If accounts are already in arrears, and legal action have been taken, it is tougher to negotiate payment terms. If previous arrangements were not honored, it is also tougher to negotiate payment terms.
WHAT IF DEBT MEDIATION ARE UNSUCCESSFUL, WHAT OTHER REMEDIES DO I HAVE?If Debt Mediation aren’t successful, there’s several other remedies for families that suffer financially, like Sequestration (Get Debt Written Off), Debt Review, Liquidation for companies, etc.
WHERE DO I FIND A DEBT SPECIALIST?Cure Debt – Your Debt Specialist, don’t wait until it’s too late,
CALL NOW!
