Debt consolidation for debt counselling- how the process works
Overview
Debt counselling is a formal legal process. If a consumer is declared to be over-indebted, a registered debt counsellor can negotiate a restructured payment plan.
How the process works:
When you are undergoing debt counselling you will be protected from legal action for a period of 60 days.
Your creditors will be required to liaise with your debt counsellor. You won’t have to deal with any harassment from creditors.
The Debt Counsellor is responsible for:
- Assessing the full extent of your debt situation
- Providing a debt remedy that helps you repay your debts according to your affordability
- Providing you with an affordable and realistic monthly budget
- Preventing the repossession of assets
What is debt consolidation?
Debt consolidation is a debt management tool that can be used by over-indebted individuals to get their finances under control. It’s essentially a process that involves using new debt to pay off existing debt owed to creditors and can help you get rid of debt faster.
Debt consolidation for debt counselling means that a debt counsellor has decided that this option is the most suitable for your individual needs.
For debt consolidation to work, consumers have to be sure that they are able to afford the monthly instalments every month.
Debt consolidation for debt counselling is a solution that may give consumers more disposable income at the end of the month. It may result in a lower interest rate charged, which may in turn lead to lower monthly instalments.
What are the benefits of debt consolidation?
- Paying a single repayment to a bank or financial institution may be lower than having to pay multiple institutions separately.
- Debt consolidation is an effective way of taking control of debt.
- It’s a simple way of becoming debt-free.
You can avoid any legal action being taken against you and settle all your debt.
To find a provider of debt consolidation, click here.
