EXPERT TIPS FOR BECOMING DEBT-FREE

If your monthly income is primarily used to pay creditors, you are in trouble, but you are not alone. Aside from home loans and vehicle finance, most South Africans have excessive debt. If you want to learn how to live with less stress and less debt, keep reading.  Because you're in luck today. Our highly knowledgeable debt relief specialist, Christine, will offer expert guidance on how to become debt free.

HOW TO GO ABOUT BECOMING DEBT-FREE
In debt? Before you hastily consider a consolidation loan as a solution to deal with persistent creditors, it's important to note that these loans often come with exorbitant interest rates. In addition, the repayment period is extended. While some of your accounts may have been resolved within a year or two, you currently have a significant loan that may require up to five years to fully repay. Consider consulting with professionals to mitigate these risks.

PRACTICAL TIPS FOR ACHIEVING FINANCIAL FREEDOM
sequestration should be considered as a last resort.  But it has proven to be effective.  Nobody wants to lose their assets, and nobody wants to do anything that will harm their credit score. However, if you consistently struggle with late or missed payments, your credit score will suffer. 

IS ONE LATE PAYMENT THAT BIG A DEAL
Discover how important it is to pay your bills on time. Don't let one late payment stop you from moving forward. Stay ahead of the game and avoid lapses that might waste time. You are in control of your finances, so make sure that each account is managed properly.

DISCOVER THE REASONS WHY A DEBT CONSOLIDATION LOAN MAY NOT BE THE IDEAL OPTION FOR YOU.
Debt consolidation may seem appealing, but what if you have judgements? Can't afford the monthly consolidated payment? Remember that you can't borrow to consolidate debt if you're under debt review or have judgements or defaults listed against your name. You aren't eligible for loans while under debt review because your credit report demonstrates that you are overly indebted.

DO CONSOLIDATION LOANS COVER ALL DEBTS?
Perhaps in other countries, but not in South Africa. A consolidation loan in South Africa mainly addresses loans. Not credit cards, overdrafts, or clothing accounts, etc. that can be used again once the debt has been settled. As a result, it is unlikely to work if you have mainly credit card debt, overdrafts, and clothing or current accounts that you can use again after the debts are settled.

WHEN ALL ELSE FAILS, WHAT'S NEXT?
If you've already tried a consolidation loan and debt review, your options for debt relief are limited. The only remaining choice is sequestration. Sequestration is a last resort, but it is recommended that you speak with a company that specialises in all debt relief solutions available under South African law to ensure that you are aware of your options and do not learn by trial and error.  Find the most advantageous and cost-effective solution the first time.

WHAT IS SEQUESTRATION?
In terms of the Insolvency Law of South Africa consumers can apply for sequestration.  Sequestration is the process by which you petition the court to be declared bankrupt. If you qualify, which means that your liabilities must exceed your assets and you are unable to pay your creditors, the court will grant sequestration, subject to certain conditions.  Once granted, your debts will be written off, and you will be able to start over debt-free.



Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. Call Cure Debt before making any decisions based on this information. The information is current as of the publication date.