Financial Debt Guidance Services of Southern Africa

Debt counselling is a process that offers education to consumers about how to avoid incurring debts that cannot be repaid through establishing an effective debt management plan and budget. In other words, debt counselling is a well organized method of debt consolidation, typically through a debt management plan. Pay plan solutions subscribe to industry best practices often deal with the ideal solution which lies in a combination of products. Because every client is different and every solution can be tailor- made for you in order to provide the best debt help possible.
After joining a debt management program, the creditors will close the customer's account to future charges. The most common features of debt management programs are:
1. DMP as advertised by most agencies is debt consolidation of multiple monthly payments into one monthly payment, which is usually less than the sum of previously paid payments by the customer.
2. The second feature of a DMP is a reduction in the interest rates charged by creditors because the customer with defaulted credit card account will often be paying an interest rate approaching 30%. But after joining a DMP, credit card banks sometimes lower the annual percentage rates charged to 5-10%.
3. The third benefit offered by DMP is the process of bringing delinquent accounts current which is often called "reaging" or "curing" and occurs after making a series of on- time payments through the debt management program as a show of good faith and commitment of completion of the program. If one looks at any longer term loan statement one is often forced into i the harsh realization that more than half of each monthâEUR(TM)s payment goes towards interest and fees. Clearly the answer to paying off debt faster lies in a well-structured Debt help plan.
Debt counselling in South Africa can be defined as a procedure where a person can no longer afford to meet all his monthly debt obligations, he can apply with a debt counsellor to negotiate on his behalf with his creditors for reduced monthly repayments. The process provides a consistent system of debt restricting which places priority on the eventual satisfaction of all responsibilities for the consumer's obligations. The available amount of debt repayments is calculated after all basic living expenses have been budgeted for and provides you with more breathing space without getting into trouble with your creditors for paying less than the original installments.

Once the consumer have completed the first free assessment, they will have a clear picture of how much they needs to pay each month and how long repayments will need to be made to get the consumer out of debt.