Are you struggling to repay your debt? You are not alone! Most South Africans have excessive liabilities besides their home loans and vehicle finance. If you do not want to be part of this category any longer and if you want to become debt-free with less stress, read on for expert advice.
Don't apply for a consolidation loan to settle smaller debts or to get harassing creditors off your back. These types of loans usually end up costing you more as they often go hand-in-hand with higher interest rates. The result is that the overall period of payback is then extended. Some of your accounts might have been settled under a year or two, but now you have one large loan that might take up to five years to settle.
Don't apply for further credit cards in an attempt to get funds to pay other creditors. This will only result in a situation of "borrowing from Peter to pay Paul" and will only serve to eventually worsen your situation with high-interest rates and finance charges on each additional card, adding another creditor that wants payment.
Don't apply for a fixed-term personal loan in an attempt to get money to pay your taxes and other creditors. You will be stuck with higher interest rates, administrative fees, and a loan that will take three to five years to pay off, leaving you with even less income to pay for living expenses and your remaining debt - rather seek expert advice to become free of these liabilities.
Nobody ever wants to lose their assets, nor do they want anything to negatively affect their credit score. However, if you've missed a payment or only paid late every month, your credit score is already affected. A single missed payment on an important account can put you back for months.
For most people Debt review might seem like the way out, but be careful because most people we deal with, went under debt review and ended up with a monthly installment that kept increasing and eventually became too much to pay. Personal bankruptcy may be the last way out, but it is the most efficient way to have up to 80% of your debt written off for good.
Personal bankruptcy, also referred to as voluntary sequestration, is the process whereby you apply to the court to be declared insolvent, which means your liabilities exceed your assets. There are certain requirements that must be met before the court will award the sequestration, which include:
If you have sufficient assets that can be sold and the creditors' minimum benefits are paid out of the sequestration sale, you will be able to save up to 80% of the money owed. If not, and there's a shortfall, you will have to pay it over a period of 18 to 24 months.
Less stress with no debt will give you the opportunity to start fresh and rebuild your financial wealth. Call us on 087 570 1790 for expert advice and legal help to become debt-free quickly and efficiently, or send an email with your cell number and contact details to info@gmilaw.co.za and request a call-back.
Copyright © 2023 Rohan Lamprecht. Disclaimer: The information in this article is of a general nature for educational purposes only, relevant to the publishing date. Any opinions expressed are solely those of the author and do not necessarily reflect the views or opinions of Grobler Malope Inc. The content is not intended to constitute professional or legal advice, and you are encouraged to call and consult with our attorneys to discuss your specific situation before making any decisions. Grobler Malope Inc - 087 057 1790 - info@gmilaw.co.za