Debt Counselling: An Important Part of Managing Assets in South Africa
The numbers don’t lie – there’s over R2.5 trillion in personal debt in South Africa right now. Even more staggering is that R70 billion to R100 billion of that belongs to consumers already undergoing debt counselling.
According to Benay Sager, Chairperson of the NDCA, South Africa has a world-class debt counselling system. And guess what? It works! Sager believes that if more people take the plunge and seek help, we could see the current R15 billion in annual returns shoot up to a whopping R25 billion. That’s a serious boost to the economy right there!
Read: When is the Right Time To Enter Debt Review?
Currently, around 250,000 South Africans are benefiting from debt counselling, making monthly payments to their creditors. All in all that adds up to about R1.25 billion paid back every month. This money is tied to critical assets like 20,000 homes and 60,000 vehicles – helping people avoid the dreaded repossession of their valuables.
Sager also points out that it’s high time debt counsellors started seeing themselves as part of the asset management industry – albeit the side handling distressed assets. By offering debt counselling, companies like Debtline ensure that you don’t lose your home or car. Their goal is simple: tackle those high-interest debts first so you can free up your income to focus on other financial needs, like finally saving!
Read: 3 Common Misconceptions about Debt Review
Debt counsellors are like the unsung heroes of financial stability. They help restructure your debt, ensuring that more money keeps circulating in the economy – and trust me, that’s no small feat!
Why Debt Counselling is a Big Deal in South Africa
There are plenty of reasons why debt counselling is a must-consider option for many South Africans. Here’s why it should be on your radar:
1. High Debt Levels
South Africans are drowning in debt – that’s a fact. The household debt-to-income ratio sits at around 65%, with some folks spending up to 75% of their income just to service their debt. That’s where debt counselling can really help. It provides a structured way to manage and reduce your debt burden.
2. Financial Rehabilitation
Debt counselling doesn’t just get rid of your debt. It teaches you how to budget, manage your finances, and keep future debt issues at bay. So, in the long run, you’ll feel more in control of your finances, and who doesn’t want that?
3. Structured Repayment Plans
One of the major perks of debt counselling is that your counsellor will negotiate with your creditors. They’ll hammer out a repayment plan that’s far more manageable than what you were doing before. This means your monthly payments will be much lower, giving you some breathing room and keeping you from needing to borrow from elsewhere.
4. Legal Protection with Debt Review
Once you’re under debt review, you’re protected from creditors trying to take legal action against you. That means no need to worry about losing your home, car, or other valuables. You’re safe while you work on paying off what you owe.
5. Stress Reduction
Debt is stressful, no doubt about it. But debt counselling doesn’t just help with the practical side of things – like repaying your debt – it also takes a load off your mind. You’ll learn how to handle your debt more effectively, and with professionals guiding you through the process, you can finally breathe a little easier. They’ll take on those tough conversations with your creditors and work out a plan that’s actually doable.
Read: 10 Burning Questions About Being Under Debt Review
Debt counselling isn’t just about short-term fixes. It’s about building long-term financial stability and giving you the tools to achieve real financial freedom.
What Debtline Can Do for You
Ready to get back on track financially? Debtline is here to help! Their team of NCR-registered debt counsellors offers top-notch advice, assistance, and support to get your finances sorted. Debtline’s debt relief programs are tailored specifically to your needs, ensuring you get a plan that works for you.
And it’s not just about debt relief – Debtline is passionate about educating South Africans on everything from debt to financial wellness. You’ll get all the money tips and tricks you need to manage your funds successfully. Plus, they’ve got your back throughout the entire debt review process, offering assistance and protection every step of the way.
Read: What Can Debt Counsellors Do for You?
One of the greatest things about Debtline is how personalised their plans are. They consider your unique budget and create a strategy based on what you can afford. This way, you’re not under more financial strain while working towards becoming debt-free.
Ready to start your journey to financial freedom? Fill in the contact form to get a callback from the Debtline team, and take that first step towards a debt-free life today!
