It’s the worst time of year, but it doesn’t have to end this way
Did you spend all your money in December? Are you left with more debt than before December hit? Make this year different – you don’t have to do it alone. Old Mutual Finance can help with a debt-consolidation offer that will simplify your repayments and allow you some breathing room to get back on track with payments that are past due.
Credit is a valuable tool that can help build a future and meet family needs. But if not managed correctly, it can become your Achilles heel. Jan Moganwa, CEO of Old Mutual Finance, says the key to managing debt is open communication and acting quickly. The sooner a financial institution is aware of a problem, the sooner they can help. And one of the ways they can help you is with debt consolidation. “What people don’t know is debt consolidation makes debts controllable and can save you money,” Moganwa says.
How can debt consolidation help?
- Instead of having to pay many accounts, all the debts are placed in one loan.
- One interest rate, instead of different interest rates on different debts, will be agreed. Given interest rates are at the lowest level in more than 30 years, customers are most likely to get a better rate depending on their financial positions. The objective should ideally be to settle your most expensive debts first.
The advantages of debt review
- Only one amount must be paid to the debt counsellor every month. The counsellor then ensures that a payment distribution agency makes payments to creditors.
- Collectors and creditors cannot harass you.
- Your assets are protected from being repossessed by credit providers while you are under debt review.
Before you consider debt review, know this:
- Only over-indebted people will be eligible.
- It is only for SA citizens.
- Only people with jobs can qualify.
- You cannot enter into any new credit agreements (you cannot apply for any loans or finance) while under debt review.
- If legal action is already being taken to recover money, this cannot be included in an application for debt review.
- It is not free. Debt counsellors charge for their work, and attorney’s fees must also be paid as all applications must go before a court or tribunal before an order can be granted.
- All income and debt must be disclosed to the counsellor.
- Credit bureaux information will alert credit providers that the providers cannot approve any more loans for a person affected.
- Repayment arrangements are made and agreed to if the repayment plan meets the credit provider’s conditions.
- If married in community of property, both spouses must bring a joint application for debt review, and both will be considered to be under debt review.
To find out what would be the best option to manage your debt with Old Mutual, go to www.oldmutual.co.za/debt-consolidation Old Mutual Finance is a licensed financial services and registered credit provider (NCRCP35). Ts & Cs apply.