After the pandemic, a lot of South Africans fell into financial disarray. We received an influx of enquiries about Debt Mediation and what it entails. This article, 'Debt Mediation Entails...' will provide you with the relevant information to make an informed decision about your financial situation.
COVID Relief and Assistance
Financial institutions came forward with COVID relief options. Despite not experiencing a loss of employment or reduced income due to COVID, many consumers chose to accept the COVID relief offered by creditors, which provided 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.
Accounts that fell behind accrued additional interest, resulting in higher monthly payments to cover the outstanding totals caused by the COVID relief solutions.
COVID & Financial Difficulties
The mention of COVID and financial discord often go hand in hand. This connection can be attributed to various factors, such as the explanation provided above or the unfortunate circumstances of reduced consumer income and loss of employment.
Get ready for a brief description of debt mediation and everything it entails.
What makes debt mediation an attractive option for consumers?
When consumers find themselves burdened by excessive debt, many individuals turn to financial remedies such as debt mediation to try to reduce their monthly installments. This is often the case when they are facing financial difficulties. When managing their monthly expenses because of less revenue and unemployment, they need a debt relief solution that will work without having an adverse effect on their credit profile.
Understanding Debt Mediation
Debt mediation is a valuable process that assists consumers in reducing their monthly repayments to creditors. By re-negotiating monthly installments with creditors, it provides relief to those who find themselves overindebted.
The Evaluation
Is it important that you complete the following steps when evaluating your financial situation?
1. How much are you currently distributing towards your debt monthly?
2. Can you comfortably manage these payments considering your existing income?
3. Once the debts are taken care of, are there sufficient funds left to pay for your essential living expenses?
4. Do you find yourself using credit cards to cover costs like food and electricity due to a lack of available funds?
5. When considering debt mediation, it's important to determine that monthly payments align with your ability to pay.
Is it possible for me to handle debt mediation on my own, or should I think about employing a professional to guide me through the process?
For the best chances of success, it's advisable to reach out to a debt expert who specialises in debt mediation.
What is the cost of debt mediation?
Many companies offer evaluation services and can provide you with a quote. However, pricing will depend on the quantity and nature of the debt. Dealing with certain creditors can be quite challenging, as they may not always respond promptly to correspondence.
What if I've already made payment plans and now I want to enlist debt experts to help me with debt mediation?
It is recommended that you keep the commitment you made until the creditor responds positively and approves the new payment plan. After that, the new payment plan will take effect.
How successful is debt mediation?
The success of debt mediation largely depends on the creditors' decision to grant you the grace of accepting the renegotiated installments. If accounts are up-to-date and not in arrears, it is easier to negotiate payment arrangements.
Negotiating payment terms becomes more challenging when accounts are already in arrears and legal action is underway. This is because the creditors can see that you want to pay your bills but are unable to service the debt due to circumstances beyond your control.
What happens if debt mediation is unsuccessful? Are there any other options available?
If debt mediation proves unsuccessful, there are a variety of alternative solutions available to families facing financial hardship. These options include sequestration, which allows for the possibility of having debt written off, as well as debt review and liquidation for companies, among others.
Looking for a debt relief expert? Look no further!
CureDebt is your expert in debt solutions. Take action now; don't delay; contact us right away!
WHY TRUST CURE DEBT WITH YOUR FINANCES?
CureDebt is an
NCR-accredited debt relief expert. Your well-being is of utmost importance to us, and we understand the impact this process may have on you. We fully recognise the likelihood of financial consequences if you choose not to proceed; however, our primary focus is on assisting individuals in overcoming their financial difficulties. Embrace a fresh start and
start living again. What does CureDebt offer?
We partnered with a variety of professionals, each specialising in their own unique fields, to better serve our clients. Boasting an impressive collective experience spanning more than a century. Our expertise is in assisting individuals and companies in achieving financial freedom.
BECOME DEBT-FREE TODAY!We provide a variety of services and SPECIALISE IN FINANCIAL DIFFICULTIES AND REHABILITATION.
Debt Review | Debt Counselling | Debt Mediation & Restructuring | Cancellation of the Debt Review | Sequestration | Rehabilitation | Liquidation | Credit Clearance of Credit Score | Business Rescue, etc.
Contact Cure Debt today to assist you with all your financial difficulties and start living again. Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on Cure Debt rather than relying on the information herein to make any decisions. The information is relevant to the date of publication.
