How Debt Restructuring in South Africa Can Help You Take Control of Your Finances

 


 

If debt is overwhelming, beginning to feel unmanageable, don’t worry—you have options! Debt restructuring, when applied the right way, can be a really effective method to lessen that pressure and keep you on track with repayments, helping you steer clear of any further financial troubles. In this mini guide, we’ll explore what debt restructuring in South Africa is all about and how it can empower you to regain control of your finances.

 

What is debt restructuring?

 

Debt restructuring involves collaborating with creditors to create an affordable monthly repayment plan for individuals who are facing challenges in meeting their financial commitments.

 

For example:

 

Jane owes R165,000 and currently pays R5,000 per month. After losing her husband, Jane now bears the full responsibility of supporting her family and can no longer afford the R5,000 monthly payment toward her debt.

 

To restructure her debt, Jane would reach out to each creditor individually to renegotiate the repayment terms and adjust the debt to fit her new circumstances. Or, Jane could apply for a debt review, in which a debt counsellor steps in to reorganise her debt and repayment schedule on her behalf.

 

The second option is often more effective.

 

Benefits of debt restructuring in South Africa

 

Debt restructuring in South Africa can offer numerous benefits for individuals struggling with debt. This includes:

 

●     Giving you a chance to pay off your debt without facing legal action or additional interest charges

●     Enabling you to secure better repayment conditions, such as reduced interest rates or extended repayment timelines

●     Consolidating multiple creditor payments into one simple and manageable monthly payment

●     Assisting you in preventing bankruptcy and safeguarding your assets from potential loss

●     Providing a structured plan to regain control of your finances and improve your credit score

●     Offering protection against harassment from creditors and collection agencies

 

At Supercompare, we can link you with a debt counsellor who will guide you through the legal steps of debt counselling and help design a tailored debt restructuring plan for you. Simply complete our online form to get in touch with one of our representatives today.

 

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