Car Repossession - How To Save your vehicle

Why should you hire a trustworthy credit bureau clearance company?

Here are reasons why you should hire a trustworthy credit bureau clearance company instead of trying to do it yourself.

In life, milestones like buying your dream home, getting that perfect high paying job, or getting your ideal car are all important. These are all significant steps towards feeling like you have accomplished something. However, how can you make progress when you have a low credit score?

Furthermore, your credit report and having a good credit score will be crucial factors in determining many of your future financial decisions. Having your credit score increase by five points or decrease by five points can make an enormous difference when you apply for a home loan or vehicle finance. Your credit report might even influence the outcome of an employment application.

A good credit score consists of a score above 620 in South Africa. The average South African consumer credit score ranges from 570 to 650, and nearly a third of credit-active consumers have credit scores far below six hundred. Your future financial choices will be severely limited if you do not have a respectfully high credit score.

Credit bureau clearance or ITC bureau clearance involves disputing inaccurate, unverified, or paid-up items on your credit report with the four major South African credit bureaus: Experian, Compuscan, XDS, and TransUnion. By removing these adverse listings, you can set yourself up for financial freedom and increase your credit scores simultaneously.

Do I have the ability to restore my credit report and improve my credit score on my own?

You certainly can. Each credit bureau in South Africa will provide you with one free copy of your credit report every year, which you can use to check and dispute any incorrect or unverifiable information on your own.

It takes time and inside knowledge to resolve a dispute with bureaus without the assistance of a reputable credit clearance company.

Credit Clearance companies like ourselves help take away all that extra time and hassle the do-it-yourself credit clearance would cost you. In addition, our expertise, and our vast knowledge of what to look for can offer you a valuable advantage. In addition, we provide a free aftercare service of six months for any questions and advice.

You might still be uncertain, so here are a few more reasons why collaborating with us to restore your credit scores and credit reports is a promising idea.

We will save you time:

Besides having a busy schedule, you will have to squeeze in extra time to call all the bureaus to request reports. After this process is complete, you will need to carefully review all your credit reports to find backlisting and unpaid listings. Aside from this, you might miss listings that would qualify for removal or updating. If you lack experience or are unaware of what should get removed, you might miss these removal opportunities.

To update or remove adverse or paid listings with all four credit bureaus, you must communicate with each of them via e-mail or telephonically. You also lose time you could be spending on something you enjoy.

We manage everything related to credit clearance.

Finances can cause stress and dealing with those difficulties can add to that stress. The added pressure can inhibit your ability to focus on finding a solution. When you work with our credit bureau clearance company, everything gets managed for you.

Our firm provides credit bureau clearance services in a stress-free manner. You can expect us to negotiate discounted settlements with your creditors, remove inaccurate information, and update any adverse account statuses on your behalf.

We also deal with the four main credit bureaus to ensure your credit report reflects the positive changes we have implemented.

Our Credit bureau clearance service offers the following services:

A comprehensive review of your four main credit bureau reports.
Drafting and preparing relevant documents and letters to all the Credit Bureaus
Contacting and negotiating with law firms and collection agencies.
Disputing all adverse listings
Our team will patiently examine all your related issues and assist you in resolving them efficiently and effectively.
Recommending and discussing any plan of action to reduce debt to income ratios.
Recommending and discussing how you can increase your credit scores.
If you use our credit clearance service to improve your credit report, you will have a better chance of getting the home or car you want.

**We will save you money with our credit bureau clearance service**

Credit bureau clearance specialists know exactly where to spot commonly overlooked errors that are sometimes hard to catch, like prescribed debts, retention periods and if data which was listed against you unfairly.

Since we are experts, we know how to aggressively dispute and remove paid and prescribed items from credit reports. We will also assist you in creating a repayment plan to help you get rid of any debt since high-interest loan payments can spiral out of control over time.

In addition to helping, you restore your credit report and score, we will educate you on what you need to do to have a good credit report in the future. We will assist you in strengthening your financial management techniques. Aside from providing personal finance tools under our aftercare service, we also assist with credit monitoring and credit score tracking for free.

We know all the Credit bureau loopholes.

Credit bureau clearance can be confusing due to the ever-changing credit Act and its terminology and nuances. It is essential to understand the four major credit bureaus and how they work. Each bureau has a different dispute process, so knowing how to dispute adverse against each bureau can be helpful. You will also benefit from learning ways to spot and monitor errors that appear on your credit reports and scores. Although you can do this for yourself, our credit clearance experts know how to manage any situation quickly and efficiently.

The skills we possess as negotiators are exceptional.

Trying to negotiate a reduced settlement amount can be incredibly challenging.

Every day, we collaborate with attorney firms, financial institutions, banks, collection agencies, and credit bureaus.

With our experience dealing with these credit providers and collection agencies, we can negotiate the most advantageous agreement for all involved.

The practical benefits of a good credit score!

You can benefit from a good credit score in the following ways:

Qualifying for loans will be easier.
You will get approved for credit cards with higher credit limits.
You will be able to rent a house or a townhouse effortlessly.
You will qualify for lower interest rates on home loans and vehicle finance.
You will receive lower interest rates on personal and revolving loans.
You will not get declined employment opportunities due to a low credit score.

What negative items appear on my credit report?

You can find both positive and negative listings in your credit report. The following items harm your credit score and your creditworthiness:

Judgments
Tax Judgments
Defaults
Sequestration court orders
Debt review indicators
Administration orders
Trace Alerts
Poor payment Histories
Excessive amounts of payday loans
Several credit inquiries within a brief period.

How can I improve my credit?

You must always pay on time for all credit agreements.
If you want to open new accounts, do so sparingly.
Make sure any accounts with arrear amounts get settled.
Reduce the ratio of credit you use
You should avoid closing old accounts, especially those which have a good record.
Consistently monitor your credit report and scores
Consider using our credit bureau clearance service to deal with any adverse swiftly and professionally.

My credit score is determined by what factors?

Five main factors affect the credit score you receive from each credit bureau:

The ratio of credit usage.
Your payment histories.
How old your accounts are?
What types of new credit you obtained?
Adverse listings like judgments and defaults.

**Conclusion. Is the credit bureau clearance service from Credit Salvage right for me?**

Our credit bureau clearance service may be the solution for you if your credit report contains any adverse, inaccurate, old accounts that need prescription investigations or mistakes that you cannot seem to fix on your own.

We will quickly and professionally create a plan of action to communicate with your creditors and all the credit bureaus to ensure only accurate information gets displayed on your credit report. We will also ensure that credit bureaus update and correct the incorrect information.

The essential thing to understand is that we or any other credit clearance company cannot instruct the bureaus to remove legitimately adverse or unpaid listings from your credit report. We will, however, still collaborate with you to negotiate a discounted settlement that will ultimately lead to the update or removal of the adverse information. We do not stop until we have improved your credit report.

You may be able to take steps to resolve your credit bureau problems by yourself, but we recommend reaching out to one of our reputable credit clearance professionals for assistance.

Apply today by clicking the picture below so we can start the process for you

Revolving accounts vs Installment accounts

Revolving credit versus instalment credit and Credit scores

Have you ever wondered what the difference is between revolving credit vs instalment credit? Your credit score depends on your historical and current payment history, default listings, and debt to income ratio. Did you know, though, that the type of debt you have matters? When bureaus calculate theses scores, some debts are considered more important than others. This post focuses on two categories of accounts that have a significant impact on your scores with all the bureaus. These are revolving vs instalment facilities. Let's dive right in by starting with revolving credit.

Revolving credit.

Revolving credit is a credit facility with a pre-approved credit limit determined by your affordability and creditworthiness. A revolving account enables you to withdraw funds from it, and then when you repay some of the facility, you can access more funds from the facility in the future. Simply put, revolving accounts are an ongoing credit facility where you can borrow money whenever you need it.

The credit limit of a revolving credit facility is determined by meeting specific affordability requirements and being creditworthy. Credit cards and revolving loans are the two most common forms of revolving credit. You can decide how much of your credit limit you wish to use. Most revolving loans operate as lines of credit, where the borrower spends then repays the portion they used. You will be able of using the facility again in the future.

What effect do revolving accounts have on your credit score?

A revolving credit account allows you to borrow as much as you like, up to the credit limit you qualify. Depending on how much you owe, the credit provider will inform you of the minimum instalment through a monthly statement.

Poor payments can severely damage a credit report score, so make sure to pay every month on any revolving account. Your different credit bureau scores will be negatively affected if you miss a payment.

Usage. The amount you owe on revolving accounts heavily influences your score. An important variable in credit utilisation is how much you owe compared to how much credit you have available.

You will notice an increase in scores when you only use a small percentage of a revolving credit limit.

Revolving credit: its advantages and disadvantages

It is possible to damage your bureau score if you misuse cards or revolving facilities in any way. A revolving credit account, however, will boost your credit score if you manage it correctly. This type of account offers three benefits:

Revolving accounts allow you to monitor and manipulate your credit utilisation ratios as needed.
By adding these accounts to your credit mix, you will increase your different bureau credit scores.
Revolving credit provides consumers who qualify with the flexibility to access money as needed.

When not managed carefully, revolving credit can be a risky way to borrow. Your credit utilisation ratio plays a huge part in determining your credit score. Due to the nature of revolving accounts, it is easy to abuse these accounts without ever noticing. The danger of revolving facilities is that you can build up a balance without realising it. As soon as your outstanding balances start to accumulate, you can expect a drop in your credit score. A high utilization ratio will negatively affect your all your bureau scores.

Check out these tips on improving your credit score with revolving accounts.

Pay the minimum payment required each month on your revolving account without fail.
Make sure you spend no more than 50% of your credit limit. If you spend more than 50% of your limit, your utilization ratio may be affected.
Consider paying more than the minimum monthly payment.
Sign a debit order to pay the minimum amount on time. Sign a stop order at your bank to pay a predetermined amount extra if you wish to pay more than the minimum.
Ensure this type of account never gets into arrears by checking your statement and credit report each month.

Using revolving credit wisely will increase your score as it is one of the best credit score boosting accounts in your credit mix.

Getting help

The Credit Salvage Bureau Clearance service is available to individuals who dedicate themselves to improving their creditworthiness.

In completing our ITC clearance process, we help to ensure that prospective lenders and credit providers know that you are a responsible consumer. Credit providers use bureau scores to assess every application and will only grant new facilities to low-risk applications.

In addition, these companies will evaluate and assess your ability to service your current debt. We will help you create a new profile by removing or updating old adverse items!

Should you struggle to improve your score by manipulating revolving accounts to your advantage, give us a call or click the picture link below. We will either advise you free of charge or inform you when we believe you need to enroll for our comprehensive ITC clearance process.

How to manage these types of accounts during a financial crisis.

You should take action as soon as possible if you encounter a cash shortfall and can't manage payments on your revolving and instalment accounts. Managing unmanageable debts is possible with the help of debt counselling. You can use this service if you have revolving or instalment facilities such as credit cards, personal loans, payday loans, revolving loans, or any other type of debt.

Credit Salvage is here to help you if you want advice on handling your money and reducing or eliminating your outstanding revolving and instalment accounts. We are here to help you regardless of how much money you earn or how you are employed. You can count on us for confidentiality, and we will never pressure or judge you.

As long as you are committed to this process, you can be confident you will have the opportunity to enjoy a debt-free financial future. By providing you with financial solutions today, we strive to prevent debt troubles for you in the future.

With the debt review process, you will have no problem managing your money smartly and successfully. With debt review, you will be able to create a safety net that protects you against unforeseen difficulties and unpaid items on your credit report. We will be a friend to you, encouraging, supporting, and providing the tools and information you need.

Installment credit

Instalment credit comes in the form of a loan that you pay back in steady payments every month. Loan amount determination occurs at the time of approval, and the amount you have borrowed do not change over time. Unlike revolving credit, you will not have access to this facility once you have repaid a part of it. A home loan and a vehicle finance account are two examples of instalment credit.

Instalment credit differs from revolving accounts and requires a fixed number of payments. As an example, this set monthly payment includes interest over 60 months. Revolving credit requires only a minimum repayment plus applicable fees and interest charges. Minimum payments depend on the balance at the time when your statement closes.

What is the impact of installment credit on your credit report?

Compared to revolving credit, instalment credit is a little more straightforward. Payment history contributes the most toward your credit score, similar to revolving accounts. You will be improving your Transunion, Experian and Compuscan scores as long as you keep paying all of your instalment credit accounts on time. In the same manner, missed payments will adversely affect your credit history and credit scores. When you are paying on time monthly, your account balance will reduce. In this manner, you will be building a positive repayment history on your credit report.

Can installment Loans increase credit scores and credit histories?

Paying the instalment accounts on time is one of the best methods for building and improving credit histories and scores. The payment history of a consumer is the main factor that impacts their score. Payments made on time demonstrate to credit providers your responsibility in managing your debt.

Paying an instalment loan as agreed and in time will have favorable effects on bureau reports. If you settle an instalment account early, your score will not significantly increase as opposed to when you repay an instalment account on time.

In the case of an instalment loan with a zero balance, the account is then closed. Unless the account is closed on request, a revolving account will remain open even after full settlement. Your credit report will continue to show those closed accounts for five years. Your credit score will significantly benefit from this history if you paid your instalments on time.

What are the positive effects of installment accounts on your credit profile?

You may benefit from instalment accounts if:

Your payments are always on time. When you pay your instalment accounts regularly and on time, and the credit providers report your credit activity accurately to the credit bureaus, installment accounts will increase your credit score. You will boost your credit score if you pay your instalment account on time, but if you skip a month, you will seriously damage it. An installment account payment history determines a credit score, just as it does with revolving loans.
Repossession of a car and foreclosure of a home will have devastating adverse effects on credit scores.
Credit Mixture. You can diversify your credit types by adding an instalment account if you primarily use revolving credit like credit cards and clothing accounts. Having a different variety of credit elevates credit scores.

Conclusion - Revolving credit versus installment credit

Your credit report will play a significant part in your financial life. A good bureau report is essential for several reasons, including qualifying for a credit card or instalment accounts like a car or a house. However, having a good bureau report also play a crucial role in more mundane things such as renting a home, apartment; being approved for a cell phone contract, and even getting a job.

We have talked about how a revolving account is different from an instalment account but does one impact your score more than the other? Our previous discussion also covered the importance of having a mix of different credit accounts in a credit portfolio. If you ask if one is better than the other, in most cases, the answer that you are looking for will depend solely on your credit portfolio.

Credit scores consider both these types of accounts to be vital factors in a credit mix of a consumer. From a credit perspective, these accounts serve different purposes. A home loan or vehicle finance instalment would be more likely to help you achieve your financial goals. Revolving accounts help you manage your finances by allowing for simpler payments and offering better flexibility whenever you need to purchase small-ticket items.

With careful management of a revolving account, you will be able to improve your credit report and credit scores. Revolving accounts are good tools for building credit reports and credit scores. A good credit report with good scores will open doors for home and vehicle finance.

Revolving and instalment accounts are quite different types of accounts, but both will affect credit scores. Managing both types of accounts well will ensure a steady increase in scores.

How to live within your means

These past 12 months have not been easy for you to live within your means. It has been a tough time for many people who have faced job losses, layoffs, or reduced hours and wages. Many have had to reevaluate their saving and spending habits because of income cuts. To contribute to retirement plans and education, they have had to rethink how much to invest. Financial planning is more crucial now than ever.

Living within their means is a challenging reality for individuals and families due to Covid and economic realities. Putting away credit cards and curbing spending is a first for some.

First, what is it to live within your means? The concept of living within your means is merely not spending more money than what you earn. There is nothing more to it.

Therefore, no matter how much you earn, you should spend less than your net income each month.

Especially if one is earning a lot, it sounds easy, but consumers have so many diverse needs and wants it can be challenging to satisfy them all! What is the point of giving your best in your career if it does not enable you to enjoy the rewards? Besides, it is always nice to show your family and friends what you have accomplished. What is wrong with having nice things and living in an expensive and beautiful house you can barely afford? We will explain the importance of why it is necessary to live within your needs

Planning and thinking are essential to living within your means. Take the steps you need to take to fix your finances. For those trying to live within their means in 2021 and 2022, here are some practical tips.

Keep track of your finances with budgeting!

Every time you spend money, you will need to record these purchases. It can be time-consuming; however, it will pay off. A budget must address the following questions to be effective:

What is my monthly income?
Where does my money go to cover all my living expenses?
Where does all my discretionary spending go?
Am I saving a certain amount of money each month?

To successfully live within your means, you must know the exact figures for the above items. If you are spending erratically, there is a good chance you are going to be spending more than you are making. A lot of consumers will use credit to cover expenses because their spending is unpredictable and unplanned.

A simple spreadsheet or budgeting software can help you keep track of your numbers. Initially, you should create two columns: Income and Expenses. While figuring out your income is easy, figuring out your expenses takes a little more work. Examining your bank or credit card statements could assist you in determining your expenditures. After gathering these expenses, organize them into two columns: living expenses and other expenses.

If everything goes well, you will have a good understanding of your budget by the end of about a month. Rental, water, electricity, insurance, groceries, transportation, entertainment, and so on would be the main categories. Calculate what you intend to budget for each of the categories using your spreadsheet. Do not forget to budget for items like gifts, weekend getaways, holidays, and car repairs, which will only happen now and then but are still necessary.

Creating a budget is an important, first step but sticking to the budget is what you should focus on most. Spend some time tracking your spending each week or each month to see if you are adhering to your budget. You can do this on an ongoing basis using a personal finance program or online service but ensure that you monitor where your cash is going.

Depending on your household income, you will see where your money goes each month. Using budgeting as a starting point will help you live within your means.

Budgeting tips

Income and expenses

The very first step is to determine in detail how much money you receive each month in your bank (net income). Equally important is to establish what will be going out of your account (expenses).

You can view most of your spending via your online banking or app. It will also show you regular expenses such as rent or bond repayments, car financing payments, personal loans, credit card costs, water and electricity bills, insurance costs, and monthly subscriptions such as DSTV, Netflix, and Showmax.

Change your behaviour.

Spend a certain amount on essential expenses like your rent, insurances, and out of pocket medical costs. Allocate variable amounts on flexible expenditures like monthly groceries cost, realistic entertainment cost, and transport costs. You may want to consider reducing the amount you spend on the above-mentioned flexible expenses. However, it is vital to remain realistic. You must be able to stick to your budget. Managing your money smartly, should not interfere with your enjoyment of life; it can help you control your spending.

Be committed.

Write your budget down and stick it up on your fridge or somewhere where you will see it. It will help you stay focused on your goal - financial security.

Track your progress.

Check your budget every month. If things don't go according to plan, never give up. There are also plenty of apps to help you track your budget as you spend daily. And remember, your budget should remain a work-in-progress, which you continually adjust to suit your changing lifestyle.

Here are five reasons why you should live within your means.

Debt-free living
Less financial stress
Financial freedom
You will start building wealth.
Easier saving habits

Learn to enjoy free and cheap entertainment to cut spending.

Spending money is fun. All of us enjoy eating out, travelling, and doing all kinds of other enjoyable activities. But the secret to saving money is that you can have fun without spending a lot of money. Having fun on a budget is possible. Cheap or free entertainment includes hiking at the Melville Koppies, reading, taking your kids to play on playgrounds, cooking, listening to free concerts, and seeking out free or discounted museums in your area.

You can find a wide variety of free activities online with a click of a button. Despite their lower cost, they are just as exciting as more expensive forms of entertainment. Without spending a lot of money, it is possible to have fun. While spending money on occasion is all right, do not overlook free and low-cost entertainment.

Here are some fun things you can do for under R200 in Johannesburg - http://www.travelstart.co.za/blog/fun-things-to-do-in-johannesburg-under-r200/

This list should be beneficial for young people starting out and for older people actively trying to live within their means.

Earn more so you can live within your means.

Making more money is one of the best ways to reduce the feeling of limitation that comes with living within your means. It is not quite as simple as adding a workout to your daily routine after a particularly indulgent evening.

Do not be afraid to ask your boss for more money. Investigate more lucrative jobs or create a side business.

Your earning potential does not have to stay constant. Be active in seeking out ways to increase your income that will allow you to live comfortably within your means.

Budget saving tips to help you live within your means.

Keeping up with friends and family. Don't be worried about what you don't have since competing with your friends and family can be harmful to your budget.
Do not buy but try and borrow. Consider borrowing something instead of buying it if you only need it for one day. It would be a pleasure for your friends to help!
Make a budget. Set a budget for the money you have and how much you need to spend each week and stick to it. To get started with your budget, use our simple worksheet.
Plan a free family activity. Make your family time enjoyable without spending too much money. There are many free family activities available online.
Knowing where you are spending your money. The key to living within your means is knowing where your money is going. If you notice that you are running out of money, stop all extra spending immediately and consult your budget.
Make sure you keep your grocery budget in check. Make sure you do not overspend on groceries. Selecting cheaper no-name brands and looking for specials is a great idea.
There are many benefits to buying in bulk, including saving money. Despite being more costly upfront, this is a much more cost-effective option in the long run.
If you downgrade your data and wireless plans on your cell phone and internet plan, you can save quite a bit of money each month.
Do not waste electricity by leaving the lights on when you are not in the room. Every year, Eskom increases its costs. Your budget will quickly spiral out of control if you fail to monitor your electricity bills.

Establish your wants versus needs if you want to live within your means

It is easier to identify some needs than others. Living a comfortable life, wearing clothes, and eating enough food for your health are essential things one needs to survive. It would be impossible without them. We often make our purchasing decisions based on our subjective preferences rather than on objective criteria.

Through careful examination, find out whether the item you want to purchase is a necessity or not.

Wait a few days before purchasing this item, and you may realize you do not need it all.

Living beyond your means: Five warning signs

Bond or rent payments take up a substantial portion of your income. Almost everyone would like to live in a luxurious home. If you buy or rent a property you cannot afford, your debt, savings, and living expenses will likely suffer. Bond or rental payments should not exceed 30 per cent of your income. You can keep your budget balanced by doing this.
The amount of debt you owe is high. You're living beyond your means if you pay a substantial amount towards your debt each month.
You go on holiday using loans and credit cards. You're living beyond your means if you use finance or credit cards to pay for a holiday. It is possible to save money for a holiday during the year, and then you can use that money for a holiday when you need it.
Your finances are always a mess. If you have a significant portion of your income going towards debt repayments, you must make changes right away. Observe all your monthly expenses, particularly your daily expenditures, and cut back as much as possible. If you are heavily overindebted, there are other options to assist with debt. You will receive that immediate relief through debt counselling. Here is a link that describes debt counselling in more detail.
Savings are nonexistent for you. You are living beyond your means if you are unable to save each month.

Conclusion How to live within your means:

Getting back on track with your budget might sound overwhelming if you are used to overspending. In the meantime, the simple steps outlined above will help you get started on your journey toward spending less than you make. Rather than worrying about how to pay your bills, you can begin saving for the future.

Bear in mind that there will be times when doing everything all at once can be a little overwhelming. When unsure what to do, implement a few tips at a time and work your way through them until you have mastered them all.

It is time to act, so do it now! Now is the time to begin creating the worry-free life you deserve!

We offer comprehensive credit clearance, ITC credit bureau clearance and debt review. We have a solution for each need. Click the link below to apply for our services online

The Truth about Debt Counselling

The Truth About DEBT COUNSELLING In 8 Minutes

In today's article, you will learn the truth about debt counselling and how this NCR regulated debt management plan can be one of your options when coping with debt.

We examine the following factors to help you decide whether debt counselling might be helpful to you:

How does this process benefit those who need it?
Debt counselling fees.
What is the impact of debt review on your credit report?
What debt counsellors do.
The qualifications you should expect from your debt counsellor.

**Who can benefit from debt counselling?**

Debt counselling: what is it and what is involved in this process. This process focuses on the restructuring of accounts and assisting consumers with better money management techniques. It also supports consumers with budgeting and enabling consumers to solve their financial problems without losing their assets.

This debt management plan is simply a plan of easy repayment arranged through a debt counsellor. For those with financial problems, it is one solution. If you participate in this monetary management plan, you can consolidate your accounts, such as credit cards, revolving loans, unsecured loans, cars, and bonds into an affordable monthly payment. The reduced amount will get paid to your debt review company's distribution agent so that they can ensure that your accounts get paid for you.

Based on your financial situation, a debt counsellor will help you determine the best course of action. You can entrust them with financial responsibilities. There are many benefits to using this financial program, including reduced payments and reduced interest rates. The payment distribution agent of your debt review firm will distribute your monthly repayment among your creditors as part of the debt review process.

Debt counselling offers the following advantages:

Debt counsellors negotiate with creditors on your behalf and work out repayment plans for your benefit.
One monthly payment replaces several payments, and we work out repayment plans for you.
Financial assistance and education. By gathering and adding your financial information, your debt counsellor will help you gain a clear understanding of your financial situation. No matter how big the problem seems, a debt counsellor won't let you panic. As a result, they will immediately help you develop a plan to deal with your financial problem.
Take Control of Your Life. There are many reasons why consumers find themselves with financial problems. Many people struggling with serious problems do not possess the tools needed for responsible money management. Most people have never learned about how to create a budget and to stick to it. Many consumers in South Africa haven't learned how and why to save. Many blacklisted consumers lacked an understanding of the financial costs of using credit cards, loans, and payday loans.

Become debt-free and start enjoying life. During your initial session, your Debt Counsellor will assist you in setting up a budget that works for you and your family. It involves setting aside money for future needs and account repayments. We'll talk about your goals in life and your priorities for the future. Afterwards, we'll demonstrate how you can achieve your goals with your current income through effective planning and strategy. After the financial assessment, you'll feel more confident with the management of your finances. Once you figure out what the problem is, you'll know what to do to fix it.

You can consolidate the payments of several creditors into one monthly payment with a reduced interest cost. You can rest assured that your finances will get taken care of in the best way possible. You will be guided through the entire process by a knowledgeable guide
Debt counsellors will deal with collection agencies and harassing phone calls. During the solution-finding process, you'll have someone to stand between you and your creditors.
There is a possibility of greatly reduced interest rates.
The goal of debt review is to address the underlying issues that may be causing your financial difficulties. To do this, you need to have a competent debt counsellor review your budget. Additionally, the debt review service can help you review your expenses and help you modify the behavior that caused you to get into financial difficulties.

You Might Need Debt Review If You Experience These Six Signs

It may be time to consider debt review if you exhibit the following signs of over indebtedness.

You may use a credit card to pay your accounts.
Are you always low on cash? When you cannot pay your monthly minimum account payments because you do not have any money available.
Multiple loan applications. As you continue to use your credit cards, you apply for more loans and consolidation loans.
You want to increase your credit limits. You increase credit card limits, overdraft limits, clothing accounts limits, and make use of store cards to buy food from stores like Woolworths and Game.
Is your credit card usage too high? You apply for as many credit cards as possible with the hope of getting approved.
You borrow from family and loan sharks. Every month, you borrow money from a close family member or friend and payday loan companies to cover living expenses.

The Truth About DEBT COUNSELLING infographic CSC

The following two issues should be taken into consideration when deciding whether to use debt review:

Consumers can only take advantage of this program if they are either employed or self-employed. Sadly, unemployed consumers cannot use this process.
this process affects credit records. Debt review is considered an efficient tool for managing debts without affecting a credit report negatively. The statement is untrue. An Indicator will appear on a credit report similarly to other debt recovery programs, such as administration and sequestration.

Having unmanageable finances and a poor credit profile means that you struggled to pay your account obligations on time in the past. This history indicates that you will find it challenging to make timely payments in the future. Making use of this program to alleviate debt will be the best option. Struggling consumers will not be eligible to qualify for any future new credit. Having a temporary debt review indicator reflecting on a credit report will not be too harmful.

So, you have weighed up the pros and cons of debt review and decided to make use of this life-changing process. Next, you might ask, how much does the process going to cost me? The fees are a crucial aspect that we will explore in detail in the next section.

How much will debt counselling cost me?

If you are overindebted and cannot pay your monthly accounts, this regulated process is a recommended option endorsed by the NCR. There will be fees associated with this process.

Calculate the monthly debt counselling cost on your own by following the steps below:

5% of the monthly restructured instalment will accrue as fees. The maximum monthly aftercare fee that gets charged is R450 per month.

For example,

Monthly Installment	Aftercare Fee	Installment payable to creditors
R2 000,00	R100,00	R1 900,00
R4 000,00	R200,00	R3 800,00
R6 000,00	R300,00	R5 700,00
R8 000,00	R400,00	R7 600,00
R10 000,00	R450,00	R9 550,00
R12 000,00	R450,00	R11 550,00
R20 000,00	R450,00	R19 550,00

If you make a restructured monthly instalment of R12000 each month, you'll be charged 450 Rand in fees before the PDA will pay your creditors.

Other Costs

Admin fees – R350 once-off payable on application
Application Fee – R50 once-off payable on application
Reckless lending fees – R1500 once-off payable in the first month
Tribunal Fees – R750 Once-off

All once-off fees other than the aftercare gets deducted in the first month.

Keep in mind that under debt review, you will receive reduced interest rates. The lower interest rates you will receive from debt review will cover most of the costs associated with aftercare fees.

For a comprehensive guide regarding the fees, you may visit an article we published earlier in the year by clicking here

What should you consider when considering debt counselling?

This process does not impose any limits. Individuals with debt exceeding R50,000 and a monthly income exceeding R7500 may need to seek assistance. Consumers who earn less than R7500 per month and have less than R50 000 in debt might be eligible for a debt forgiveness program. You can contact the National credit regulator for more information. National credit regulator website

In what way will debt review affect my credit report?

A notice will appear on your credit report. You will see a notification at the top of your credit report indicating that you have applied for debt counselling. This notice will remain there until all rescheduled owed amounts get paid in full. The restructured debts themselves will be fully updated as if there were no defaults once a clearance certificate is issued.

Disadvantages of Debt Review

As with any other aspect of life, debt review has its disadvantages. Debt review offers more advantages than disadvantages to someone who is deeply in a monetary crisis. Below we have outlined the disadvantages.

Not all accounts are eligible for the program, such as tax and outstanding municipal accounts.
You may not get any new credit facilities under section 88(1) of the National Credit Act
This program is not revocable once a court order has been granted. Reference: Case Janse van Vuuren Judgment - 3 September 2019
If the consumer misses a payment while under this process, the creditor terminates their participation in the debt counselling process. The credit provider will then take legal action to recover outstanding debt.
Your finance will have to be restructured jointly with your spouse if you are married in community of property.
If you pay lower monthly instalments, you might have a longer time paying off your accounts.
Debt Counselling is not a free service.

Will debt counselling get you out of debt?

Those with excessive financial problems can benefit from this process instead of sequestration. With the help of a debt counsellor, you will receive financial education, credit analysis, and a working budget. In most cases, when an overindebted consumer engages the services of a debt counsellor and is serious about paying off their debt, this process has proven to be a successful method of dealing with and paying off accounts.

You can pay off your accounts under this protected process without risk of legal action or repossessions under the National Credit Act, but this process is voluntary and needs commitment.

Failure to comply with a restructured debt review court order will result in your creditors ceasing to assist you in repaying your accounts. As a result, you must deal with your finances yourself.

On the other hand, if you committed and use the services of a reputable debt counselling firm like Credit Salvage, debt counselling is an easy, cost-effective way to repay the debt over time.

The qualifications and duties you should expect from your debt counsellor.

Debt counsellors should be highly trained and certified. The National credit regulator regulates debt counsellors appointed under the national credit act. With over a decade of experience in clearing and assisting thousands of consumers, we are trusted members of the National Credit Regulator.

Make sure your finances are being handled by a professional. It is crucial to work with a debt counsellor who is familiar with the nuances of debt and credit.

Debt Counselling not for you and do not have excessive debts to deal with?

Having a poor credit history despite being financially stable and not having a financial problem makes it difficult to obtain new credit. Do you feel down because of your low credit score? You might be having trouble qualifying for credit facilities, and your credit score isn't as good as you'd like, so you are wondering how you can improve it.

Credit bureau clearance is available to consumers who are not in financial problems but desire to enhance their credit rating.

You can also complete our contact back form, and one of our consultants will contact you. If you want to clear your credit record, we now offer a simple online credit repair application. Please click the picture below to be directed to our credit repair online application page.

Conclusion - Debt counselling program with Credit Salvage can help you get the help you need

As discussed previously, debt review will help with any debt issue that has reached the point of unmanageability. This service is available for anyone who has credit cards, personal loans, payday loans, revolving loans, or other forms of debt.

At Credit Salvage, you are welcome if you would like advice on handling your money and reducing or eliminating your outstanding accounts. No matter how much you earn or what your employment status is, we are here to help. Everything we do for you will be confidential, and we will never pressure you or judge you.

You can be confident that we will provide you with a debt-free financial future if you are committed to this process. Our goal is to help you avoid financial problems in the future. Managing your money wisely and successfully will become second nature to you. You will be able to create a safety net that protects you against unforeseen problems. You will gain a friend in us who will encourage you, support you, provide you with the information and tools you need

How to cancel Debt review and Debt counselling!

Why Did my Credit score drop?

Why is my credit score dropping?

This question why is my credit score dropping? is a common question we get all the time! You may have noticed a drop in your credit scores with TransUnion, Experian or Compuscan. Take a deep breath and stay calm!

Witnessing a decline in credit scores from time to time is common, and it does not mean that you did something wrong. Credit scores get influenced by a variety of factors. Any one of them or a combination of one or more could result in a drop in credit scores.

To save a declining credit score, you need to understand which factors might be influencing your scores. We will discuss these factors which cause a credit score to drop.

Read further to understand all the reasons a credit score can drop.

Skipped or short payments affect credit scores!

Credit scores depend on your payment history, and you need to take care in maintaining your payments. Missing a payment on any of your credit accounts will affect your credit scores. You may have never missed a payment before, but one overdue payment could affect your credit scores. Short paying an account can also drop your credit score by a substantial amount.

Tip: Paying your debts on time can be challenging if you have several loans, credit cards, and clothing accounts. You should consider using debit orders if you are concerned about missing payments.

The average age of your credit history

Several changes to your credit can happen at once, making it hard to identify which specific change resulted in your score dropping. For instance, suppose you get a new credit card. Depending on your credit situation, this could lead to a chain of events. Upon application for the card, the creditor will run a credit check. Accordingly, your credit utilization might go up or down, depending on how much you use and by how much the new card's credit limit is. There is a possibility that your average age of credit history will decrease. You may be able to benefit from another credit line in the long run by using it correctly.

During the lending process, credit providers evaluate your credit history to make sure that you will have the ability to repay the new loan on time. A long credit history shows you have more experience using credit, while a short credit history shows you have less experience.

Credit providers can determine a borrower's level of risk more accurately when they consider their credit history. The longer your credit history, the better.

The average age of all open accounts gets used to determine whether a consumer is managing their credit responsibly. Age of credit history is a measure of the duration of the use of credit. A short average will reduce credit scores. The average age of your accounts may decrease in the short term due to the opening or closing of accounts.

Typically, the average age of credit histories reduces when:

An old account gets updated as closed.
You pay off a credit card, car, or another loan that you already have.
You open a new line of credit or loan.

Tip: Avoid closing an account with a long history of good account behavior.

Why did my Credit Score drop CreditSalvage Credit Clearance infographic

Newly listed defaults or judgments on your credit reports

Credit reports with adverse listings can lower your credit scores and affect your scores for a considerable length of time. A negative listing on your credit report can stay on your credit report for one to ten years.

Listed below are credit report retention periods for each adverse listing:

In case of a court judgment, the listing will last for five years.
Payment profile conduct: After 30 days, most creditors report delinquent accounts to credit bureaus. Credit reports may reflect multiple delinquencies, which negatively affects your credit score. The overdue payment will appear as 30, 60, 90 or 120 days late based on how far behind the debt is. Your credit scores can be adversely affected by defaults that have occurred repeatedly or for an extended period. Overdue payments of 120 days will have a significant impact on a credit score.
The listings relating to enforcement actions will stay on a credit report for a year.
Debt Counselling or Debt Review - The listing will remain on your profile until a clearance certificate is issued.
The sequestration period is five years. Another five years after a rehabilitation court order is issued.
Administration orders - 5 years
Trace Alerts

Credit Enquiries might affect your credit score dropping.

You may be subject to credit inquiries when you apply for new credit facilities or rent an apartment. The credit provider may request a copy of your credit report when you apply for credit. This credit enquiry will appear on your credit report under inquiries. Please be advised that your credit score is only affected by new credit inquiries. Credit reports will reflect all your credit inquiries for two years.

Single credit Enquiries. Depending on the credit history of each applicant, credit applications have varying effects on the applicant. A single credit inquiry generally does not have a significant impact on your credit score. A single credit inquiry will typically result in a drop of fewer than five points off most people's credit scores.

A high number of enquiries. Please note that a high amount of new credit inquiries in a short time will lower your score. The reason for this is because credit providers will view you as a borrower desperately looking for credit.

High Debt-to-income Ratio will cause your credit score dropping

The debt-to-income ratio calculates your monthly debt payments as a percentage of your gross income and gets used by credit providers to predict how likely you will repay the new debt on time.

The debt-to-income ratio illustrates a good balance between debt and income when the debt-to-income ratio is low. So, if your debt payment ratio is 10%, then only 10% of your income goes to repaying your debts every month. An individual with a high debt-to-income ratio may be unable to repay their debts based on their income.

Low debt-to-income ratio consumers are likely to be able to deal with their debt payments effectively. Thus, banks and credit providers prefer low ratios as criteria for granting credit. It makes sense that credit providers favor low ratios since they want to ensure consumers are not over-indebted and have too many debt payments for their income.

How to reduce your Debt-to-income ratio

You may want to take steps toward reducing your debt-to-income ratio if it exceeds 30 per cent. You could do this by:
You should pay more toward your debt each month. You can reduce your total debt faster if you make extra payments.
Do not take on additional debt. If you have credit card and clothing account debt, consider reducing the balance. Then try to postpone applying for any new loans.
Stay away from payday loans. These types of accounts will destroy your debt-to-income ratio.
Make large purchases later like cars and home. By saving for longer, you will be able to put down a higher deposit amount. It will be easier to keep your debt-to-income ratio low because you will have to fund a smaller portion of the purchase with credit.
Monitor your debt-to-income ratio monthly to see how your progress is going. Maintaining a low debt-to-income percentage can motivate you to stay on top of your debts.

You will have peace of mind knowing you are handling your finances responsibly. To be able to repay your debts, you need to maintain a low debt-to-income ratio. You will have the ability to obtain credit for the things you want eventually if you do this. Having difficulties fixing your credit report and need assistance with blacklisted matters click the link below and we will assist with professional credit clearance solutions. We will stop your credit score dropping.

Duplicated accounts on your credit profile

If you have multiple accounts on your credit report for the same debt, it will negatively impact your credit score and your ability to obtain future credit. It is crucial to dispute duplicate accounts in your credit report and have them removed.

You should notify the credit providers that they are reporting the same debt multiple times. Provide copies of supporting documents to the credit provider detailing why the account needs to get investigated. Your dispute must be investigated by the credit provider, just like with the credit bureaus. Once the credit provider confirms that your complaint is accurate, all credit bureaus get notified to amend or remove the listed duplicated account from your credit report.

Identity Theft

Someone might have stolen your identity document to apply for and open accounts in your name. Several articles continue to report on identity theft. There is rarely a month that passes without news of identity theft.

When you learn that a fraudster has used your identity, do not panic. Your credit scores may have deteriorated, but there are steps you can take to turn things around. Your id book or card has likely been stolen if the fraudster is opening new accounts. You must take the following actions immediately:

Check out a copy of your latest credit report. If you contact all the bureaus, you can download all reports for free. Notify the authorities of any accounts whose opening was fraudulent. Transunion, Experian
If accounts have been opened fraudulently, contact the fraud departments of those banks. Let them know that you have been the victim of identity theft and that they need to freeze or close your accounts. Record every call you make.
Change the password and PIN for all your existing accounts.
Inform the local police department about the incident. You have the right to dispute incorrect information on your credit report with your police report and Identity Theft Affidavit.

You should now follow these steps after receiving your police report and affidavit:

Whenever an account has been opened illegally, contact the company, and ask them to close it if they have not already done so.
If a collection agency has listed a negative item on your report, call them and ask that it get taken off.

The good news is that our banks actively combat identity theft, yet we will have to rely heavily on ourselves to identify and combat fraud. However, there are many tools available to help us to do just that. Using them now is our responsibility to stop credit score dropping.

Conclusion

You may feel anxious if your credit score drops. In most cases, you can correct the reduction by identifying the factors that caused it and fixing it. The sooner, the better.

Next time your credit score changes, ask yourself these questions:

Has your spending changed since last month? If this is the case, your debt-to-income ratio has changed.
Are you behind on your payments? There is a chance that an overdue payment could be harming your credit score.
Did you apply for credit? Your report might have become subject to a credit enquiry, which could negatively impact your score.
Do you have a credit card that you have closed or a loan you recently paid off? You may have seen a change in your credit score if this is the case.

Something has changed that affects the credit score that you were not aware of. It is essential to keep an eye on your credit report to keep track of changes in your score.

Put the right plan in motion to prevent drops in credit scores, whether it is setting up debit order payments to avoid missing payments, paying off adverse accounts, or addressing errors in your credit reports.

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