What to do if you can't afford your monthly debt repayments - 2019
If you're behind on payments and always short on cash every month, you should act with a quick and decisive goal to reduce the damage of accumulating debt you cannot afford. Our debt counselling program is designed to assist swiftly to deal with these debts you cannot afford. In this article, we will discuss what you can do if you're unable to afford your debts.
Credit Salvage Corporation is here to assist you in every possible way with Debt Counselling and/or Credit Clearance and ITC clearance. Below is an article we have included for your perusal which will support and guide you.
Not being able to afford to pay your creditors for your debts is to a great degree a scary prospect, but it’s something that can happen to anyone. Whether you’ve taken on too much debt, have experienced a sudden decline in income or have experienced retrenchment, there may come a time when you don’t have the relevant cash flow you need to pay all your creditors and debt. Here at Credit Salvage Corporation, we have seen these situations happen way too often to our new, existing and recurring clients.
If this happens to you, it is important you react in a positive and quick attitude to try and mitigate the damage to your credit status. Acting with a positive and quick attitude will ensure your current and future financial life does not get affected.
At Credit Salvage Corporation we assist our clients with Credit Clearance and Debt Counselling Services, but before we get more into our services and to help you get started, here are the steps you can take before making use of Credit Salvage Corporation credit clearance and debt counselling services.
Try to find the cash needed to pay your creditors
It may seem obvious, but if you can’t make your monthly payments the first thing you should try to do is to free up enough money to get your expenses and creditors paid. This approach is the only sure way to avoid late fees, potential damage to your credit score, as well as other consequences like legal fees.
Finding extra part-time employment to bring in more income is another possible solution, selling non-essential items you have around the house will also free extra cash. These may be short-term solutions unless you have the time to keep up your part-time employment until you’ve paid off some of your debt obligations and brought them down to a more manageable level. These solutions can at least buy you time some to put other plans in motion in dealing with your debt and to clear the debt.
Budgeting is important. Take the time to set up and plan a comprehensive budget if you don’t currently have one. Take control of monthly expenditure – you’ll find it surprising at how much money you can save to cover living expenses and debt.
Unfortunately, in most situations finding the money to settle some of your debt obligations is impossible. If that’s the situation you find yourself in, you’ll need to consider our debt counselling services under the trade name (Credit Salvage Debt Counselling Services). We will set up a realistic budget to cover all your living expenses and we will propose an affordable repayment plan to your creditors with reduced interest rates.
Focus on the accounts you need to pay
When paying all your creditors is impossible, determine which debts you’re going to make sure you pay on time so you can put your money towards these accounts first.
For most people, it makes sense to pay back secured credit before unsecured credit. This means that your first available money should go towards covering your home loan and vehicle finance. If you don’t pay these accounts, you put yourself at risk of losing your house to foreclosure or your car to repossession. Either foreclosure or repossession will do serious long-term damage to every aspect of your life and both must be avoided at all costs. Under our debt counselling program, we will ensure your house and vehicle remains safe at all costs. These valuable assets get protection under the National Credit Act when one applies for debt counselling.
See if debt consolidation is an option
If you haven’t missed any monthly payments and your credit profile and your credit score is good, a debt consolidation is an option for you where you combine all your debt into one payment.
If you have tried debt consolidation before and got declined due to affordability or a bad credit score, your only other option would be debt counselling. Debt counselling is like debt consolidation – the only difference is that debt consolidation works with money (see our explanation about debt consolidation in the next paragraph) and debt counselling is a restructured repayment plan to all your creditors with reduced interest rates. Under the debt counselling program, you will only pay one affordable payment to all your creditors.
When you consolidate your existing debt, you secure one new loan and use that loan to repay as many of your current debts as possible. Under debt consolidation, you will have a single loan repayment which usually ensures you have a reduced commitment to credit providers. Debt consolidation is very difficult to get without a perfect credit score and you will have to prove that you will be able to afford the loan.
You could also look for a consolidation using your existing home loan; this option always has a longer repayment timeline at a much lower interest rate but the cost to repay these debts under your home loan will be more expensive in the long run. This option is definitely a viable solution especially when it makes your debt repayments more affordable.
Contact your creditors as soon as possible and let them know about your financial predicament and that you need debt help. If you are struggling to pay your debts and there are a couple of credit providers you know won’t be getting a payment for a particular month, contact the creditor as soon as possible and tell them that you are not going to be in a position to pay the money due.
Debt Counselling and Debt Review
If you can’t escape your financial problems by settling your debt, insolvency is your last option. Do not contemplate insolvency before considering our Credit Salvage Debt Counselling program. Under our program, we will ensure you don’t get declared insolvent and all your assets will remain safe at all costs. These valuable assets get protection under the National Credit Act when a consumer applies for our debt counselling program.
Please bear in mind that Insolvency or sequestration have serious long-term consequences and damage your credit score for a very long time.
The important thing is to take action and clear debt as soon as possible!
If you cannot pay your accounts each month or won’t be able to pay your accounts in the future, it is imperative you take swift aggressive action.
Get debt help today if you are finding the whole situation too much to handle
Credit Salvage Corporation provides the following services which will offset any problem you face:
- Debt Counselling
- Credit Clearance services
- Settlement negotiations
- Credit reports