Consolidating debt without collateral

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A Debt Agreement is similar to a consolidation loan, where all of your debts are included in one contract.

Like a consolidation loan, this gives you the convenience of one regular repayment instead of several bills to keep on your mind every month.

Unlike a consolidation loan, any interest on your debt is frozen; you only repay what you can afford to and the remainder is legally written off.

If you find that your finances are spiraling out of control or that you are living on credit to make ends meet, for whatever reason, it is important to act quickly—just remember that you are not alone and that help is available.

It is always a good idea to take a long hard look at your budget before you discuss your options with a debt specialist.

If you’re suffering from temporary financial hardship (illness, unemployment or other reasonable cause), you have the right to request that your creditor changes your loan contract. As of July 1, 2010, all creditors are ‘consumer credit providers’ and are regulated by the NCCP (National Consumer Credit Protection Act).

Requirements protect consumers with how lenders can deal with you, which includes Financial Hardship considerations.

Payment Strategies are all about becoming debt free without restructuring your finances.

Payment Strategies are the main tool of financial counsellors and work best with outstanding credit card debt.

You will want a finance professional to guide you through the best solutions for your situation.

For example, contractual penalties on paying out personal loans early counteract any savings.