The latest shock wave of Junk Status will effect the already so vulnerable consumer struggling to cope with the increase of living costing. Understanding that planning is now more crucial and immanent than before as we have no certainty of how long the instability in the economy will have a negative effect on our pockets. We can’t ignored that food prices will sour, interest rate on vehicle, home loan and other credit agreements will increase, transport cost will increase and more pressure on jobs security as companies will close for various reasons trying to survive. Families will be faced with more financial burden to pay debts and keep provide for basic household needs, in most cases expenses has been cut to the bone to make debt repayments and cover all other day to day financial commitments.
At CDS we see consumers in the age groups 25-38 increase numbers of over-indebted individuals most have families and dependants, desperate to find alternative solutions to protect their bond repayment, vehicle repayment and other credit obligations from legal action should they default, opening another loan account is no longer a option as the consumers do not qualify due to not able to afford the loan repayments. It is safe to say that our clients find they don’t have anyone to speak to for advice and their debt is not a topic for discussion at a braai with friends or family the sentiment is everyone has problems they are dealing with.
Understanding that debt review is a very safe and legal option when you can no longer afford your contractual bond, car or other debt repayments. In a difficult economy the debt review payment remain unchanged and the interest rates remain unchanged when the interest rates increase on lending. Our consumers adjusted much better with their available cash flow, sticking to a budget becomes a skill and a new habit forming lifestyle, paying debt over a longer term and seeing debt is shrinking while being able to afford the essential living expenses gives peace of mind to consumers that was at the point or close to losing everything.
Most of the matters we see for assessment are spending 69% of the salary on debt repayments, the house hold expenses needs 60% of the income to cover insurance, rent if there is no bond, school fees, transport etc. CDS understands that every house hold has its own challenges to overcome their money worries month to month.
What will the debt counsellor do for you on your first contact?
- Do an assessment to understand your debt affordability.
- Your house hold budget will be taken into consideration, for expenses you must cover besides your creditors.
- See the criteria of your creditors and how it can be restructured.
- In South Africa your home loan can be included into debt review, the bond can be restructured to a more affordable repayment plan.
- Then let us take another step further, and make this new payment plan a order of the court.
- Having the court order enforces the creditors to accept the restructured account.
At CDS we put the smiles, swing back into your family life.
Visit the NCR – register for registrants and go see for yourself if NCRDC2452 Annienne Nel is a registered practitioner with the NCR. You can also go to DCASA “debt counsellors association of south Africa” and search there for me, now that is how you make sure the people you want to deal with is registered debt counsellors.
For a FREE debt assessment, obligation free go to our Contact page…. Complete your details and one of our experienced assessment consultants will call you back and assist you with all the requirements to assess if you are over-indebted and do indeed qualify for the debt review program, this is a very good exercise to do before you really can’t make your payments any more.
Now you are one step closer in making the right decision to help your financial situation survive the economy and protect your assets from repossession.