Why would my lenders accept less than I owe them?
In the case of an IVA, Protected Trust Deed or Debt Settlement Plan, your lenders may agree to settle for less than your current balance owing. The reason is because they know there is the very real chance that someone with serious debt problems will simply walk away from their debts, leaving them with nothing. And from the perspective of your lenders, something is better than nothing.
Will I lose my assets, such as my house and my car?
Most debt relief programmes will allow you to keep your assets. However, there are some options which may require you to give up some or all of your assets including bankruptcy and sequestration. Your debt advisor will help you find the option that’s right for you.
I have payday loans. Are you able to help with that?
Payday loans are typically accepted into most debt relief plans. Your advisor will be able to assist you with more information.
How long it will actually take you to become debt free will depend on the amount you owe, how much you can afford to repay each month and the programme you enter into. Your debt advisor will discuss all of your options with you and let you know how long each programme would take to complete.
How long will it take for me to get out of debt?
All debt solutions affect your credit rating in some way. Your credit rating may be affected for up to 6 years and you may have difficulty obtaining credit in the future, depending on which programme you enrol into. Nevertheless, if you are having financial problems it is very likely that your credit rating has already been negatively affected, particularly if you have missed a payment. The good news is that no matter what your credit rating is, you can always rebuild it over time and this process can begin as soon as your debt relief plan ends, as long as you remain debt free once the plan has ended.
How will debt Solutions affect my credit rating?