A lot of people fall into uncontrolled debt at one point in life. It is very common to get into various kinds of loans with different credit providers. Suddenly everything gets out of control and before they realized what they have gotten themselves into, their indebtedness has resulted into a tarnished credit record and at times they become blacklisted.
In the course of South Africa?s economic slowdown, a number of consumers have become targets of mounting debts, may it be on credit cards, car and housing loans. Not to mention small debts that remained unpaid. This resulted into a horrific financial situation. Most of the credit providers had to take the brunt of the financial crisis, but of course they were not that compassionate and demanded repayment.
When you reach a point when you can no longer meet your monthly debt installments for your credit card, car or home loan, there is no other way out for you except debt counseling. Debt counseling is the main task of debt relief companies which aims to address your debt problems and find the solutions best fitted for you.
Since South Africa has a basically high employment rate, consumer debt relief loans are the most frequently used solution. Debt relief loans come in the form of debt consolidation which will aim to pay all smaller debts, put together, and will eventually make the consumer debt free. Debt consolidation as a debt relief option will enable the consumer to pay only one creditor monthly which would result to a lower interest rate. Thus with this debt relief solution, consumers will end up paying less than in paying all the debts individually.
There are credit providers who are willing to lend money to people who are blacklisted or have a tarnished credit record. Although, it is best to check this out carefully to determine which credit provider will give the lowest interest rate. Before getting into debt consolidation, counseling is recommended for advice or other debt relief options. Nevertheless, putting together all debts into a consolidated debt is a good method to get back a good credit record.
Paying off all debts will boost any consumer?s financial future and will also increase his ability to be eligible for better credit. Before making a financial decision, take a close look at the consumer debt loans option. It is always a wise decision to know exactly what you are getting yourself into.
We advise you to check out different financial providers or creditors and opt for the one that offer the best interest rate or the correct financial solution for your needs.
Source: http://www.theauth.net/business-finance/personal-finance/consumer-debt-relief-in-south-africa
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