With South Africa’s economy in 2018 doing so badly there’s a lot of pressure on South African families to change their spending habits by reducing their spending, especially those who have a lot of debt. As most people know there’s good debt and bad debt. And like most families these debts will be in education and homes. And like most families as well there might be bad debts like massive clothing accounts credit and mounting credit card debt.
Debt restructuring, as it sounds, involves getting your creditors to reduce your monthly payments by getting into a new agreement as to your repayment period (how long you will be making payments), and most importantly how much you will be paying over this new repayment period. This is a good idea, but you must also know that you will be paying more in total amount of interest as you are now spreading your debt over a longer period. It is also a way to avoid taking out a debt consolidation loan because of legal reasons.
Can you do it on your own?
Sure, you can talk to them and see if you can get another payment plan. But it is advisable to get in touch with a debt specialist or financial adviser as they would know what to look for in the new payment plan and if it is beneficial for you.
What process can I look forward to in a debt restructuring?
There’s a typical debt repayment process that might take place:
Debt Analysis. There will be an initial analysis of your credit scores, your creditors and other factors that determine what the next step for your repayments may be. This will be done by a professional who deals with debt.
Reports and Recommendations. After your analysis, there needs to be a report or recommendations on how you may restructure.
Negotiations. A negotiation by a debt professional with your creditors in order to reduce your monthly debt payments.
Payments. You are now done with your negotiations and you have to be at a place where you stick to your new agreements with your creditors.
Buying clothes is more than just having something to protect yourself against the cold weather or cover ourselves, it is a fashion statement that shows others what we stand for and can uplift your mood by giving you a self esteem boost. Sometimes we go overboard and buy way too much on credit for ourselves and loved ones, and spend too much to the point where we get into too much debt that we’re not able to pay back comfortably.
Clothing accounts for blacklisted people is near to impossible, and one of the only ways to get out of that debt is to consolidate the debt in order to pay it off and clear their credit history. This is due to the effect that you will be blacklisted until you clear your debt.
At a point where your clothing accounts are more than you can handle it may be a time to settle your clothing account debt by consolidating it into a short term loan. This will help in paying a lower interest rate, and anything else will be defeating the point of a debt consolidation loan.
Many also open clothing accounts whilst they were students, purchasing and spending way too much without realizing that the debt will need to be repaid monthly. Perhaps being a student on a stipend or allowance, they do not realize that the account will end up getting them in debt, and causing them to be blacklisted.
Consolidating your clothing accounts debt may also help you pay less per month, but only if this solution will allow you to pay your debt off and not to add more debt to your credit profile. Since clothing accounts are short term loans, essentially, you may expand them with a debt consolidation loan in order to give yourself and your family some breathing room with your debts. This may cause you to incur a longer payment period or a similar/higher payment amount, but if the aim is to not pay as high as before then this solution should work for you.
As with every debt consolidation loan, you should consider the implications a new loan will have on your future cash flow, even though you will be paying this loan off rather than the one you’re replacing. You should also consider the interest rates that are being offered that will be used to consolidate your debt.
Do you receive your monthly salary in a bank account?
Then you stand a chance of securing a debt consolidation and start living a debt free life.
One of the first things you will need to do when you get yourself a debt consolidation loan is to change your spending habits by drawing up budgets and sticking to them. It sound easy but this is the first thing that can trip people who have just qualified for debt consolidation loans.
This website talks at length about how a debt consolidation loan works, and Sanlam, like other financial services providers, is able to offer you a debt consolidation loan. Sanlam debt consolidation loans work through your home loan.
So how are you able to get a consolidation loan from Sanlam? Through re-financing your home. If you own your own home you will be able to re-finance your bond and use that extra cash to pay off big ticket items such as high interest especially at the current 2013 interest rates. This can also include the furniture you bought on hire purchase, you can pay them off and reduce your payment on them.
Are you able to be financially disciplined enough to take on a debt consolidation loan? Because that is the advice Sanlam debt consolidation loans demand, or any other consolidation loan for that matter. But unlike other companies that offer debt consolidation, Sanlam really thinks you should give it more thought. This is because a debt consolidation loan is a great tool if you use it properly. Now, I’m certain you have said to yourself that you will surely take better care of your financials and not come close to ruin again, but discipline is more than just making a promise to yourself and it is about actually changing the way you deal with money.
As always, it’s good advice that you apply with more than one lender so as to compare rates. You can be successful with one debt consolidation loan but fail with the other, so read up on how you can qualify.
Struggling to find debt consolidation loans in Port Elizabeth? The Friendly city not so friendly towards your dream of consolidating your debt? Apply here online for debt consolidation and get help with your debt from anywhere in the country. How will debt consolidation help you? Debt consolidation will help you pay those high interest debts by getting you one loan with much lower and longer term loan.
So, even if you are in P.E. you can get help lowering payments on:
Debt consolidation loans can also help you get lower your risk on getting a bad credit record by paying off that loan you struggling to pay and already are late on.
You can get a secured debt consolidation loan or an unsecured debt consolidation loan, depending which one you are able to afford. Remember that you will have a debt consolidation loan is an actual loan so you will still have to be credit worthy to be approved for a debt consolidation loan.
If you do not qualify or are just too far with your debt, you can apply for debt help here, where you can apply for debt review and debt counselling.
Get up to R 230,000 personal credit with Capitec Bank. Capitec Bank offers its customers who are on its Global One product to apply for a personal loan of up to R 230,000 and pay it off in 84 months. You can get a loan within 20 minutes of application. The bank will also contact you to tell you whether you have been approved or declined for the personal loan.
What do you get with this?
The money will be available in your transaction/savings account immediately after approval
You also get Free retrenchment and death cover from Capitec Bank
When applying for a Capitec Bank personal loans please remember:
Your South African ID book
An original proof of residence such as your municipality bill
Your latest salary slip or salary advice
A 3-month bank statement
Capitec bank also prides itself on being transparent and they publish how much you will pay for their loans. Here is a list of examples of loan repayments: http://www.capitecbank.co.za/personal-banking/credit/rates
When you apply for a debt consolidation loan, there are a few thing that websites ask for when you apply for a debt consolidation loan online (keep this information handy when you apply):
Whether you are blacklisted
Your personal information such as marital status and ID number
You banking details, including your bank account details
Employment details such as employee number, frequency of salary
Income. Gross/Nett income, expenses (calculate these carefully)
Spouse/next of kin information. This is to verify other information
As always with loans, you should have the following documents:
South African ID
Proof of address
3 months bank statements
Before all of this is sent out, make sure that you have agreed to their terms and conditions, and you are happy with the interest rate that they will charge you. Getting a debt consolidation loan can be can be simple, and how you can get it is also explained here.
To apply please go here!
There are a number of ways debt consolidation loans have helped people and it is by helping people not to default on the debt payments of get a bad credit record. A debt consolidation loan puts together all your debts so that you can pay off your debts and breathe a little easier the next few months.
A debt consolidation loan differs from a personal loan in that this can be large amounts of cash at your disposal. The interest rate is often lower and is payable over a longer period of time than a personal loan.
How else can they help individuals?
– By putting your debt in one manageable loan.
– By reducing the risk of defaulting on your high interest rate loans
– By having one major loan to service you are less likely to be seen as a high risk by credit providers
– By reducing the amount payable each month, you can breathe easier because you have a set budget that services the loan
You will have to consider a few things before rushing out to find yourself a consolidation loan, and this includes what the loan is for and how much you need in order to cover your existing loans.
There are a lot of debt consolidation loans for South African citizens, the trick is getting an affordable consolidation loan that suits you as an individual. A warning that is always given to people who would like to consolidate their debt is that they should realize that they are actually taking out another loan, which means their debt has not magically disappeared but rather that it is now a lot more manageable.
This is because consolidating a loan means you are taking a loan so as to pay off your existing loans that have a higher interest rate and you are putting your debt into one manageable loan that has a lower interest rate and, because it is mostly over a long period, a longer period to pay your debts off.
And which consolidation loans are available in South Africa?
They are the secured loans, where you have to have collateral like a house (and depending on who you talk to you can put in your pension, etc., and other sure finances as collateral). Credit providers who give these loans are mostly the big financial institutions like Absa, FNB and Standard Bank. To read more on how this is done follow this link.
The next is an unsecured loan, where you do not have collateral like your own home or secured finances. This, and you will find this out when you visit credit providers, is the most risky for lenders. Follow this link to find out more about it.
At the end of the day you do not need to despair about finding loans available to consolidate your debt tailored especially for you.
Apply for an unsecured debt consolidation loan and brace yourself for higher interest rates. What is the difference between this type and other loans used for debt consolidation? This is an unsecured loan, which means that you as the borrower would not place any collateral with the lender. Would you later to default with the lender they would claim from your claimed assets.
This sort of loan attracts higher interest rates because this is a greater risk for lenders. This is because an unsecured loan means you as a borrower are not fronting any collateral for the loan, which naturally makes you an even higher liability, and attracts an even higher interest loan than had you taken a secured loan.
Now, if you are blacklisted and don’t have collateral like a property, this might be the perfect loan for you to take up. Of course you will have to check the pros and cons of taking such a high interest loan over a long period to clear your debts. The higher the loan amount the longer you will have to pay the loan back.
You will need the usual documentation such as South African I.D., 3 months pay slip and bank statements.
To increase your chances, most credit providers are more likely to loan you if are not under debt review, earn a monthly or fortnight wage, not be a commission earner, have a bank account that your salary is deposited into, prove your money expenses so as to show affordability.
Unsecured debt consolidation loan for blacklisted people is a solution for most people, but not everyone.
To apply please go to our loan consolidation page.