DEBT MANAGEMENT

WHAT IS DEBT MANAGEMENT?
Simunye Debt Advisory provides debt management services to South Africans who are experiencing difficulties in meeting their monthly debt obligations. Our accredited debt advisers will assist you in developing an affordable and realistic monthly budget, formulate a debt management plan, and communicate with your creditors on your behalf.
Our debt management plan guarantees that all the funds you contribute are allocated towards repaying your debts, allowing you to do so at a manageable rate. You make a single monthly payment to the Payments Distribution Agency, which then disburses the funds to your creditors on your behalf.
HOW DO YOU KNOW WHEN TO APPLY FOR DEBT MANAGEMENT?
Individuals who allow their debts to accumulate before seeking assistance often discover that:
- their credit cards have reached their maximum limit;
- Credit providers often turn them down or refuse to lend to them;
- Matters have escalated beyond control, and;
- it takes a significantly greater period to repay their debt.
Which types of debts can be repaid through a debt management plan?
A debt management plan can exclusively be employed to repay the following categories of debts:
- personal loans
- payday loans
- store cards
- overdrafts
- credit cards
- home loans
- building loans
Which types of debts cannot be repaid through a debt management plan?
A debt management plan cannot be utilized to repay the following types of debts:
- electricity bills
- TV Licence
- rent
- child support and maintenance;
- court fines
- SARS income tax debt
What are THE BENEFITS OF DEBT MANAGEMENT
There are several advantages to debt management, and consulting with our debt advisers before deciding to implement a debt management plan. These benefits include:
- Simunye Debt Advisory debt management consultants will give you advice about better ways of managing your money and suggesting ways of dealing with debts that you might not know about;
- making one regular monthly payment allows you better control over your finances;
- gives you peace of mind – in many cases, you will no longer be contacted by your creditors or debt collectors;
- your creditors may agree to reduce or freeze interest and charges on your debt and may stop other activities like taking you to court.
CHOOSING YOUR DEBT MANAGEMENT PLAN CONSULTANT
- The debt consultant is accredited by the National Credit Regulator (NCR);
- The debt consultant reviews all available options with you to address your debt issue;
- You are informed upfront about the cost of arranging the plan and the method of payment for that cost;
- You are made aware of the consequences if the debt consultant ceases to manage the plan due to missed payments;
REVIEW AND UNDERSTAND THE TERMS OF YOUR DEBT MANAGEMENT PLAN
Prior to initiating a debt management plan, the operator should clearly explain the terms and conditions, including:
- The amount of money you will be required to pay each month and the duration of the payments;
- The circumstances under which the debt consultant may cease managing the plan, such as failure to make the required monthly payments.
There are advantages to consulting with our debt advisers before deciding to implement a debt management plan. These benefits include providing advice on more effective money management strategies and suggesting debt resolution methods that you may not be aware of.