contactus

Debt Counselling News

Differences between Debt Counselling and Debt Consolidation

Debt Counselling serves to instil in the mind of the client, a cash only life style and concentrates on the repayment of existing debt over a period of time, through a structured payment plan without pressure from credit providers or threat of repossession of assets! You are protected from your creditors under debit review which was set out by the National Credit Act!


Debt Consolidation puts together all your existing debt into a single facility which is obtained from a credit provider. You then make a single monthly payment to a single credit provider. The interest rate may be lower than, for example, credit card rates, but the repayment period will be longer. The down side of consolidation is that the credit provider will require collateral for the facility and will insist that you bond or re-bond your property or other suitable asset. If you default you will lose all your asset/s which will be sold off to repay the consolidated loan.

 

PMB & Natal Midlands

We are able to assist you!
  1. Pietermaritzburg
  2. Ashburton
  3. Camperdown
  4. Hilton
  5. Cedara
  6. Tweedie
  7. Merrivale
  8. Howick
  9. Nottingham Road
  10. Mooi River

If you feel you are over-indebted, do not wait until it is too late. Our offices are centrally located in Pietermaritzburg for your convenience.
Contact Us Now!

Powered by

Powered By Fidelity Debt Counselling (Pty) Ltd
Our Advice PDF Print E-mail


The best advice that any debt counsellor can possibly give you is to seek help as soon as you feel that you are facing financial stress. If you wait, it may be too late to take advantage of the protection offered to you in terms of the National Credit Act.

  • Should you receive a letter of demand, telephone call, or you are being harassed by cereditors for payment of outstanding debt, contact us immediately.
  • Do not sign any documents prepared by your credit providers until your debt counsellor or an attorney has looked at it.
  • The finance houses are very aggresive in respect of repossesions of assets, such as cars etc. They employ so-called repossesion agents who will contact you demanding that the keys to your vehicle be handed over and various other methods that they use to enable them to obtain possesion of your assets. Only the Sheriff of the Court in possesion of a valid court order may force you to hand over your assets.
  • Do not approach people who promise easy solutions or promise to assist you by means of removing your name from the black list or any other so-called debt assistance for a hefty upfront fee. In most cases all that will have happened is that you will have lost a substantial amount of money in so-called fees.
  • Keep all documentation, statements, and communications that you have received in respect of your credit agreements. These may be of vital assistance at a later stage.
  • Do not try to "borrow your way out of debt". This is in all likelyhood the most expensive debt that you can incur and seldom puts you in a better position than you were before taking loans at high interest rates.
  • Use your common sense, if it doens't sound right, feel right, or sounds strange to you, it probably is. Seek advice as soon as possible.
    •
  • Do not despair. There are many people in your position. The National Credit Act was passed by the Government to help us to help you.

 

  • Please ensure that you have all your financial information with you when you come and see us:
    1. Identity Document
    2. 3 months payslips
    3. 3 months bank statement
    4. Latest statement of accounts (All accounts you wish to put under Debt Review)
    5. List of your monthly living expenses
    6. You will be required to open a savings account with a bank you DO NOT have debt with!
 

We'll Call You!


Please complete the short form below and we'll contact you!