The first step in finding a debt solution is identifying the type of debt problems you have. If you are skipping payments and alternating between which creditors to avoid, just to have enough money to live on every month, it is time to consider a debt solution. Sit down and make a budget, account everything you owe and determine the exact amount owed to your creditors every month. If that amount exceeds what you need to cover basic living expenses, it is time to investigate ways to solve you debt.
Finding an adequate debt solution begins with knowledge. Knowing which options exist for over-indebted consumers, will allow the consumer to take the correct steps to secure themselves financially. Firstly a consumer can try and consolidate their debts by taking out a loan to cover all existing debts. If that is no longer available, it is time to consult a debt counsellor. They will advise the best debt solution, and recommend debt review if necessary. Lastly, another option is for a consumer to apply for sequestration – although this is the ultimate last resort and should only be considered when all other options have been thoroughly exhausted.
Once a consumer has made the choice to resolve their debts, they will start feeling the freedom of debt relief. As payments diminish and money becomes freed up, stress levels go down and consumers feel at ease once again.
Experts agree that debt counselling is the primary debt solution as it provides the consumer with the most security and assistance while resolving their debts.
Article written by: Andrea van Tonder 03-2013