Consolidation Loans vs Debt Counselling

At Debtco Group, we are regularly approached by clients who are uncertain of how to move forward to overcome their debt problems. When deciding on Consolidation Loans vs Debt Counselling, it is important to consider the severity of your debt problems. Debt Counselling is specifically impactful when an individual who is over-indebted makes use of the service, as it is aimed at offering financial relief while still providing legal protection against creditors.

As South Africans, we are faced with a high cost of living which is proving to take its toll on low to average-earning consumers. Adding debt to your list of problems is a huge burden, and when you are already finding it challenging to afford your expenses, it is almost impossible to manage your monthly debt instalments without fail. If you’re faced with the decision of Consolidation Loans vs Debt Counselling, take into account the differences between the two. In most cases, our team of Debt Counsellors advises individuals to choose the Debt Counselling option, if they are determined to be over-indebted through an affordability assessment.

Make a list of your financial concerns and decide on Consolidation Loans vs Debt Counselling. Debt Counselling protects you and gives you considerable breathing room to focus on getting your money problems under control. Once we’ve examined your debt, income, and expenses, our team present you with a affordable Debt Repayment Plan, based on the newly reduced monthly repayments we have negotiated with your creditors on your behalf. Consolidation Loans are a type of personal loan taken to pay off all current debt. You save money because you’re now paying off one loan with a lower interest rate, instead of many loans that each have high interest rates.

A Consolidation Loan is most effective when your debt issues are less significant, as this loan does not offer you any protection from your creditors. A Consolidation Loan can be the better option if you just need help managing multiple debt payments, with the benefit of paying off less each month. With a Consolidation Loan, once your debt is settled and you’re paying off the loan amount, that is that. With Debt Counselling, you have a dedicated Debt Counsellor on your side when you need them, to guide you on your journey to becoming debt free.

Debt Counselling also helps you to avoid becoming blacklisted, while any banks, creditors, and debt collectors are prohibited from contacting you to demand money. At Debtco Group, we have the skills and experience to offer an effective service that will help you live your debt life. It is not uncommon to ask the question of which is better for you, Consolidation Loans vs Debt Counselling. We can help you make the right choice for your best interests.

Being in debt can feel like the end of your world. Your financial future may seem bleak, but there are legal ways to get out of debt and keep your credit score in check. Contact us today for a solution to your debt problems!