Debt Counselling - is it the best solution?

There is usually a myth that debt counselling does not work in the best interest of consumers. To the contrary when the process is undertaken professionally, it helps you repay your debt on time without hustles and harassment from collection agencies.

Most importantly, debt review protects you without limitation in terms of loans that can be restructured. In the case of a Consolidation Loan, it is impossible to get a lump sum that can pay off your house or vehicle as this will result in high interest payments and instalments which are more than your affordability.

Debt counselling helps you break the debt-cycle which you might have found yourself trapped in. That is, you no longer must borrow money to pay your loans every month. This is because your instalments would become affordable and manageable.

Above all, It is important to understand that debt review is not a payment holiday or a means to save money by paying less to credit providers. It is a debt-relief measure designed to rehabilitate over-indebted consumers.

Other debt counselling advantages

Firstly, debt review helps you eliminate your existing credit card and unsecured outstanding balances. This also includes unpaid medical bills and payday loans. As a result it eliminates the hassle of collection calls. Once you sign up for debt review, you can answer the phone and tell them you’re working with a Credit Management firm. Collection agencies must then go through the management firm.

Secondly, debt review teaches you how to budget and manage credit effectively. Therefore helping you to establish long-term financial stability. That is, you are provided with resources for learning financial literacy.

Contrary to the general belief. It’s also worth noting that working with debt counsellors won’t negatively impact your ability to qualify for new financing in the future.

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