Have you recently been declared debt-ridden by the NCA (National Credit Act)? Do not be confused and worried. A large number of debt management companies are there in South Africa that can rescue you from this perilous situation. So, once you have chosen a debt management company, you will be able to pay off the loans with either of the debt management plans.
Firstly, let’s take a look at the two of the most popular debt management plans offered by most of the South African debt management companies.
This legal procedure involves forming a new strategy which will cover all the loans you have taken previously. This way you will be able to manage your expenses and gradually pay off the debts on a monthly basis. The rate of interest is also significantly lower than the actual interest rate.
The process of debt consolidation requires all the debts to be consolidated under one loan. You will be required to take a new loan through which the previous debts will be paid off. In this case also the debt manager will negotiate the interest rate with your creditors. It is a monthly pay off scheme.
Debt that can be cleared by a debt management plan:
To be a part of the debt management plan, you need to be acknowledged first by the NCA as a person under debt. You should also have a steady source of income.
Advantages of a debt management plan
Your credit score will actually improve once you have enrolled in the programme. This is the most effective way of becoming debt free.