The Positive Effects of Debt Rescue
Debt rescue can help manage the current over-indebted state of South African consumers.
Debt rescue, also referred to as debt consolidation, involves combining all your current debt and then being granted one big loan to repay your all your debts, in which case you then repay the individual or institution that provided you with a loan. You can either opt for debt rescue and arrange the legal terms yourself or opt for debt review and have the legal processes dealt with for you.
What Debt Rescue/ Consolidation Can Do for You
Debt rescue loans can help you repay your debts by simply paying a loan provider with a single payment a month. Debt rescue loans are arranged based on a lower interest rate. Once you commence the debt rescue process, you won’t have to pay an added interest. The total repayment of the loan is thus, less, which allows consumers to repay their debt in a more manageable and attainable way.
Debt rescue won’t get rid of your debt, but rather replace it with a more convenient option to repay your debt.
The Positive Side of Debt Rescue
- Debt rescue won’t affect your credit record
In no way will your credit record be affected by debt rescue, which is one big reason why it is an appealing option for most consumers.
- Debt rescue will allow you to take on new credit
Unlike debt review, you will be able to obtain new credit even though you are advised to avoid taking on new credit. When applying for debt rescue, you will generally be advised that you should cut as many expenses as you possibly can, to avoid not being able to repay your debt rescue loan. Even though you can take on more credit, it may reflect negatively on your credit record as it will be clear that you cannot repay your existing debt without assistance.
- Repayment interest rates will be reduced
This serves as a benefit for consumers as they are struggling to keep up with their current due payments as is.
- Debt rescue is more affordable and thus, more manageable
Debt rescue allows you to instead of paying multiple installments, only be required to pay one and over a longer term, which can aid in you successfully repaying all your debt.