09 Oct How to Prevent Another Interest Rate Hike
In May 2023, the governor of the South African Reserve Bank implemented an increase in the lending rate. As a result, the repo rate, which signifies the rate at which the central bank lends money to commercial banks, has risen to 8.25%. Moreover, the prime rate, the rate at which commercial banks charge their clients when lending them money, has surged to 11.75%.
While it might appear insignificant, this adjustment can significantly affect your financial situation. If you carry debt with fluctuating interest rates, like credit cards, personal loans, auto loans, or mortgages, chances are your monthly payments have increased. To make matters worse, the governor has hinted at the possibility of further interest rate hikes down the road.
However, there’s no need to lose hope. If you’re wondering how to avoid another interest rate increase, there’s a solution. You can seek assistance from Debtco Group, one of South Africa’s foremost debt counselling company.
What is Debt Counselling and How Can it Help You?
Debt counselling is a legal process that helps over-indebted consumers restructure their debt and regain financial control. It is also known as debt review or debt management.
When you apply for debt counselling with Debtco Group, we will assign you a qualified and experienced debt counsellor who will assess your financial situation and negotiate with your creditors on your behalf.
We will help you to reduce your monthly instalments and interest rates, consolidate all your debt into one affordable payment, protect your assets from repossession and legal action, and clear your credit record once you have paid off your debt.
One of the benefits of debt counselling is that it can protect you from interest rate hikes. When we negotiate with your creditors, we will fix your interest rates for up to five years. This means that even if the repo rate or prime rate goes up, your monthly payment will stay the same. This can save you thousands of rands in interest and help you to pay off your debt faster.
How Do You Qualify for Debt Counselling?
To qualify for debt counselling, you need to meet the following criteria:
- You must be over-indebted, which means that your total monthly debt repayments exceed your net income after deducting living expenses.
- You must be a South African citizen or permanent resident with a valid ID number.
- You must have a regular income and be able to afford a reduced monthly payment.
- You must not be under administration, sequestration or liquidation.
Why Choose Debtco Group?
Debtco Group is more than just a debt counselling company. We are a trusted partner who cares about your financial well-being and happiness. In fact, Debtco has helped thousands of South Africans to overcome their debt problems and achieve financial freedom.
Here are some of the reasons why you should choose us:
- We are registered with the National Credit Regulator (NCR) and comply with the National Credit Act (NCA) and the Debt Counselling Rules System (DCRS).
- We have a team of professional and friendly debt counsellors who are trained and certified by the NCR.
- We have excellent relationships with all major credit providers and can negotiate better deals for you.
- We charge reasonable fees that are regulated by the NCR and included in your monthly payment.
- We have a high success rate of getting court orders and clearance certificates for our clients.
- We have a wealth of resources and tools to help you manage your money and improve your financial literacy.
Apply for Debt Counselling Today
Applying for debt counselling with Debtco Group is easy and convenient. You can do it online, over the phone or in person at one of our branches. Don’t let interest rate hikes ruin your life. Take action today and contact Debtco Group for a free debt assessment and consultation. We will help you to get out of debt and stay out of debt.