Alternative Debt Solutions to Bankruptcy?
When it comes to relieving significant debts, declaring Bankruptcy is perhaps the first thing that comes to mind. However, there are a number of alternatives to Bankruptcy to resolve your debt such as payment arrangements with Credit Providers,
Debt Consolidation, Bond Consolidation or Debt Review.
Choosing the Right Debt Solution for You
Whatever your current financial situation may be, Negociate Credit Solutions can help you find a Debt Solution that bests suits your current financial situation. Our experienced professionals can walk you through your options, so that you can make an informed decision about the best way forward.
Debt Solution 1: Payment Arrangement
This is a formal agreement between you and your Credit Provider that outlines how you will settle your unsecured debt outside of your original contractual agreement. A payment arrangement allows you to make fixed monthly payments that you can afford. This is reviewed every 6 months in line with your budget and income statement. It is important to note that your debt may grow during this period as interest rates are not adjusted. The term to settle debt will be also be extended.
Debt Solution 2: Debt Settlement
Debt settlement allows you to pay a lump sum that is typically less what you owe to settle your debt. This is done by negotiating a suitable settlement discount that is in line with the lower lump sum value that you have. You will benefit from early settlement discounts of up to 20% on current debt and 50% on debt that is handed over to collection agencies. As debt is settled early you will also be saving on the future interest charges that your Credit Providers would have added over the remaining term.
Debt Solution 3: Debt Consolidation
If you're struggling to keep track of multiple debts at varying interest rates, you may want to consider taking out a loan to consolidate your debts into one monthly payment, at a reduced interest rate. This option is recommended for consumers who have just started experiencing financial troubles, where the credit score has not yet been significantly impacted. Affordability will also play a key role in whether the consolidation loan will be granted or not.
Debt Solution 4: Debt Review
This is a legal solution approved by the National Credit Regulator and all registered Credit Providers in SA. A Debt Counsellor is approached to assist with this solution. A Debt Counsellor has the mandate to renegotiate original contractual agreements. The monthly installments and interest rates are reduced and the terms extended. Multiple Debt repayments are consolidated into one manageable monthly installment. A Payment distribution Agency distributes this payment to all your Credit Providers on your behalf.
Debt Solution 5: Bond Consolidation
This option is available to existing home owners that have enough available equity in the home loan to consolidate all debt. This is determined either by the difference between the current market value of your property in comparison with the original price paid, or the difference between the original price and what you owe now. The available equity must be enough to consolidate all of your debt. You not only benefit from early settlement discounts, but your credit score improves too.
Don't Let Debt get the Better of You
The first step towards regaining control of your finances is recognising that your financial issues are unmanageable and that you need experienced help. We provide every Credit Solution available in SA and so with more options to choose from, you can truly make the best decision for your personal situation.
Don't allow your debt to pile up any further. Schedule an appointment today or complete an Online Application. Negociate Credit Solutions is ready and waiting to assist you in getting out of your current financial situation and back on track.