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Debt counselling perhaps the U-turn to debt relief and a better credit record

Sometimes life has the ability to take turns with us; turns we have not necessarily prepared for. When these contingencies run through our finances and credit records though, the results can be disastrous. A sharp turn does not have to be the end of the road; it can however be the U-turn you need to get back on the road again and in the right direction.

“We can help you gain control over your finances again and manage your cash flow, budget and debt. Every person deserves a second chance to be in a better financial position. Our debt counselling services can be your answer in achieving that,” says Martheli Kruger, lawyer at DebtHealth.

Financial setbacks became more common during lockdown and might be because of bad decisions, work loss, divorce, or even the death of a partner. Although debt counselling is a process, it makes it possible to maintain a healthy credit score once again after a setback.

According to Kruger, debt counselling is a formal process by the National Credit Act where you need to contact a debt counsellor to start this process. An application form will be completed to assess your current financial ability. “All the relevant credit providers as well as the Credit Bureau will be notified, whereafter the credit providers will correspond directly with the debt counsellor. Payments are monitored and reviewed annually.

Any person with a monthly income (either fixed or commission based) struggling to timeously and fully pay all monthly debt may apply for debt counselling.

“It is very important to keep in mind that when you deal with the repayment of debt you not only calculate capital, but also interest. Debt counselling help you with both. We recently helped a client to reduce his interest rate from 20,25% to 0,81%,” Kruger confirmed. “The benefits go so much further than only the obvious outstanding capital. This specific client saved a total amount of R340 000 calculated over a five-year period after our successful interest renegotiations and therefore actually could ‘write off’ a large part of his debt.”

Except for saving money on the long run, you have a chance to protect your assets like your house and vehicle. “You consequently not only turn around your financial position, but also your state of mind and self-respect.”

DebtHealth was established by its legal firm Kruger Wilkens Attorneys as a result of 20 years’ experience in debt restructuring. “Our guaranteed legal-orientated support gives us a competitive advantage in the service we render.”

When you have successfully completed the process of debt counselling, Kruger suggests that you open one or even two clothing accounts to systematically build up your creditworthiness again. “When you open various accounts over a three-month period, however, you will negatively affect your credit record. Your credit record improves when you use between 50% and 60% of your credit limit, but the opposite is true when you use your entire credit limit month after month.”

If you want to know more about debt counselling, contact DebtHealth at 060 366 7889, send an email to clientcare@dhsa.co.za or visit their website.

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