Debtfree October 2018
The October 2018 issue of Debtfree Magazine. SA's free debt counselling and debt review industry magazine. We look at the scandal at VBS Mutual Bank and other news. We also ask how paying fees can save you money?
The October 2018 issue of Debtfree Magazine. SA's free debt counselling and debt review industry magazine. We look at the scandal at VBS Mutual Bank and other news. We also ask how paying fees can save you money?
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One of the best aspects of debt review is how you do not have to pay<br />
any big fees upfront.<br />
When a consumer applies for help, their financial situation is reviewed<br />
within a short time period. Their Debt Counsellor works with them on their<br />
monthly budget, and looks at what they can realistically afford to live on<br />
(with some big lifestyle changes).<br />
Once the Debt Counsellor knows how much they need for monthly<br />
household spending, they can simply do some simple math and deduct<br />
this figure from the consumer’s income. This produces an amount which<br />
can be used to repay debts on an ongoing basis every month.<br />
This is where things get technical and tricky, but the Debt Counsellor works<br />
out a plan over time that is as fair to all the credit providers as is practical.<br />
They may even use computer software to calculate a repayment plan<br />
which they know all the consumers credit providers will probably accept.<br />
Then they propose this repayment plan both to the credit providers and<br />
ultimately a court.<br />
It is from this adjusted monthly debt repayment amount (which the consumer<br />
definitely has available) that any and all fees will come during the process.<br />
It doesn’t come out of the consumer’s monthly living costs and it doesn’t<br />
get paid up front.
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