When looking for a reputable debt consolidation company in South Africa, it’s important to do thorough research.
What is debt consolidation?
This is a process when you pay a company a single monthly instalment and get a lower interest rate that what you’re currently paying. If you consolidate your debt it means that someone else is buying all of your debt and you are paying them back.
Even though it is possible for you to do this yourself, getting help from a reputable debt consolidation company in South Africa can be more convenient and efficient.
With the numerous financial institutions in South Africa, it can be quite tricky finding the right company to consolidate your debt. It’s important that you find a reputable debt consolidation company.
How can you do this?
Check to see if the company is registered. In South Africa, debt consolidation companies must be registered with the National Credit Regulator.
Interact with the company’s representatives in person. This way, you can get a better sense of what type of services you’re dealing with.
Shop around in order to find the loan that best fits your needs. You need to compare at least 5 different debt consolidation companies.
Find a company that can help you learn how to manage your finances better. A reputable debt consolidation company will help you avoid getting into a similar situation in future.
Be clear about the fee structure. A registered debt consolidation company will charge you a fee. Before you choose a company, add up any upfront fees to the amount of interest you will pay over the term of the loan.
Be clear about the services offered by the company. Don’t be fooled into negotiating for a lower balance – this is known as debt settlement. This is a risky process and can actually damage your credit score.
Here are a few companies offering debt consolidation assistance.