Debt Expert - Luke Hirst


Posted by: Jean | 2013/05/24 09:09

what is the best solution to getting debt settled

I am over my head in debt, i really cannot afford even the minimum payments, I have accounts dated years back that i could not pay and still cannot afford to. The thing is it is attorney letters and the interest that accumulates and now garnishees. I am stressed because of my financial crises. I have 2 kids and with expenses that keep on popping up I really do not know what to do. I have considered debt counselling but the lady say that sometimes they might not consider applications. After my debit orders and monthly expenses I sometimes only have R1000 left. Please help.

expert answer

Posted by: Luke Hirst | 2013/05/28 11:14

Thank you, for your question and people that are in debt or struggling to get out of debt, is the fact often do not know their monthly living expenses. Debt counselling is a much needed platform for many individuals as it helps you to budget, whilst paying off your debts in a shorter period of time. This gives families piece of mind and allows them to get back on track. Garnishees have had much press in recent months and these can be challenged for validity or to reduce the amount payable based on your budget. You are obviously being left with little money after debts are paid and therefore need to consider getting an assessment first to see what is going to be best for you and your family.

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user comments

Posted by: Anonymous | 2013/08/10 00:22
Debt busters are the best in service and just speaking to consultant will make you feel alot better. I don't regret going under debt review because of them! Call them, good luck xxx Gina
Reply to Anonymous
Posted by: cawes | 2013/06/07 12:35
dont go to debt cancellors they put you in trouble by not paying your debts you will end up paying more than what you expected
Reply to cawes
Posted by: mike | 2013/05/31 10:16
You should consider letting someone else take charge of your finances. Maybe your spouse, mother, brother - someone who will say NO! when you want money for less important things. Just having to ask for money will discourage unnecessary buying.
Reply to mike
Posted by: jabulile | 2013/05/31 07:57
Debt counselling is not the answer it resembels Administration ,it is better to focus on the debt that charges high interest rates first ,the same service that a debt counsellor will offer you is offered by most banks ,therefore approach your credit providers and inform them of your financial situation either request an extension in the credit term or reduction in the repayment ,also check where you spend .swop shops that costs too much like woolworths and settle for shoprite ,and restrict reusing revolving credit like clothing accounts and credit cards .check your credit bureau to see how many months your falling behind as that also affects your credit score and in the future you might need a home loan or credit for acquiring an asset and the credit be declined due to debt counselling or a bad credit score
Reply to jabulile
Posted by: Pieter Pretorius | 2013/05/30 12:28
I do not believe in debt counselling as it takes money out of the consumers pocket once again. I feel stop repayment of long-term debt for a few months and channel ALL that money into your short-term debt! Yes, your monthly capital remains the same, but you get the ugly irritating short small dragons out of the way. Once done with the short-term get a payment arrangement with your long-term credit providers and stick to the arrangement.
Reply to Pieter Pretorius
Posted by: Mellissa | 2013/06/04 08:49
You say to stop repayments f long term accounts but there could be consequences for this. My husband has been unemployed for 6 months and I am struggling. I am paying the min payment on my accounts but do not have enough money for groceries and its frustrating. I have 2 credit cards and 2 loans tat I pay. The credit cards get used again due to the insufficient groceries money I have. I have gone to creditors and explained my situation, 1 says they do not have any sort of assistance other than to have me pay less for 3 months and then add the difference for those 3 months to the normal repayment. The other loan has helped and reduced my payment, 1 credit card has moved a percentage of balance to budget which has decreased my repayment but the other credit card for some or other reason has deleted my budget facility and I can do nothing about it. I am stressed and do not know a way out other that my husband getting a job and helping with the repayments. I am considering what you say but are afraid of the consequences.

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