EXPERT ADVICE TO BECOME DEBT FREE: LESS STRESS WITH LESS DEBT
If your monthly income mainly goes towards paying creditors, then you are in trouble, but you are not the only one. Most South Africans have excessive liabilities besides their home loans and vehicle finance. If you do not want to be part of this category and want to have less stress with less debt, read on for expert advice to become debt free.
WHAT NOT TO DO IF YOU WANT TO BREAK FREE FROM THE CREDIT CRUNCH
First, before you rush for a consolidation loan to get nagging creditors off your back, you need to know that these loans often go hand-in-hand with high interest rates. In addition, the period of payback is then extended. Some of your accounts might have been settled in a year or two, but now you have one large loan that might take up to five years to settle.
Do not apply for a credit card in an attempt to get funds for paying other creditors. This will worsen the situation with high interest payback and add another creditor on your back.
Do not 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 high interest rates, a loan that will take three to five years to pay off, and less income to pay for living expenses and the rest of the creditors. Rather seek expert advice to become free of these liabilities.
EXPERT ADVICE TO BECOME DEBT FREE: SEQUESTRATION MAY BE THE LAST WAY OUT, BUT IT WORKS
Nobody wants to lose their assets, and they do not want to do something to affect their credit score. However, if you are already paying late every month or miss payments, your credit score is affected. A single missed payment on an important account can put you back for months.
Debt review may seem like the way out, but what if you already have judgments looming? And what if you are already in the counselling process and cannot pay the monthly consolidated amount? Sequestration may be the last way out, but it is an efficient approach to have up to 80% of your debt written off.
PROFESSIONAL HELP IS HERE
Voluntary sequestration is a process whereby you apply to court to be declared bankrupt. If you qualify, which means your liabilities must exceed your assets and you must be unable to pay the creditors, the court will award the sequestration, subject to specific conditions.
The law states that the sale of assets must provide for enough funds to pay the legal process, trustee fees, and the minimum benefits for the creditors. The creditors must at least be able to receive 20 cents for every rand you owe them. If there is a shortfall, then you will have to pay it over a period of 18 to 24 months. If not, and their minimum benefits are paid out of the sequestration sale, you will be able to save up to 80% of the money owed. If you owe R100 000, it means they must receive R20 000.
HOW TO GET HELP QUICKLY WITH EXPERT ADVICE TO BECOME LIABILITY FREE
Less stress with less debt will give you the opportunity to start fresh and rebuild your financial wealth. Reach out for expert advice and legal help to become debt-free quickly and efficiently.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on our attorneys for legal advice, rather than relying on the information herein to make any decisions. The information is relevant to the date of publishing.