Informed Debt Solutions

Debt free, is Stress free

Tip's To Help You Save Money:

  • When buying groceries only buy what you need don't over purchase an item which you may end up throwing away later because it went stale or passed expiry date. Always check out the in house brands, these items can often save you money and the quality is 99% of the time the same as the big brand names.
  • If you want to eat out and treat the family without spending too much always stay up to date with the specials that restaurant's in your area run. Most restaurants have a buy one get one free, kids eat free or reduced price specials at least once a week.By staying up to date you can plan ahead and treat the family without breaking your budget. 
  • A good way to always know what specials are on and where is your local newspaper or on some retailers websites. Comparing prices on high price items like nappies, cleaning materials, toiletries etc can end up saving you some money.

 

Tips To Prevent and Rid yourself of Debt:

This may be a slow process but it will have a positive effect on your finances :

Have a realistic budget and stick to it !! Put a savings plan in place, even on things such as water & electricity.

1.  Start living cash only, no more loans and debts
2.  Start using your debit card instead of your credit card
3.  Save bank costs by paying cash instead of using cards or cheques.
4.  Don't make loans when it goes tough financially, rather make an arrangement with your credit provider or approach a debt counsellor.
5.  Cut back on your monthly entertainment, luxuries such as going out, home entertainment, domestic worker etc.
6.  Discipline yourself financially.
7.  Determine which groceries are REALLY essential and refrain from buying the unessential stuff.
8.  Start to grow your own vegetable garden and become self efficient.
9.  Pay off your high cost debts first. This will help you save on interest.
10.Pay a bit more on your debts so you could pay it off quicker and save on interest.
11.Make sure you're not overcharged and that your credit agreements reflect the correct interest & charges.
12.Look out for sales when you buy.
13.Don't shop at expensive retailers.
14.Stop buying branded stuff, clothes, groceries etc
15.Invest a little every month in an investment account. Such accounts mustn't be easily accessible.
16.Cook for yourself rather than buying food from a food store or take away.
17.Resist the temptation to buy if the goods are not really essential.
18.Refrain from entertaining others.
19.Cancel your sport contracts - start to save in all areas.         
20.Get a couple of quotes before you buy, use the most cost effective one.
21.Buy second hand stuff rather than new stuff like cars, books, clothing etc
22.Always ask for a discount when you buy something.

Live according to a budget. Budget only for the essential goods needed and save the rest of your money!! While some of the suggestions above must sound silly, you will be amazed by the effects on your finances by even just using a few a the suggestions.

Lately I have been approached by a few people requesting more information on sequestration so I did a bit of research and spoke to people who are actively involved in sequestration either by been sequestrated or by assisting people with sequestration and I have come to the realisation that it is worth looking into as an option to improve your debt situation.

The reality is that more and more people are choosing this option.There are just some cases where the problem has continued on for too long and the situation has progressed to far for debt counselling to assist, you should then consider sequestration.

What is sequestration?

In instances when debt counselling cannot assist you, your only other alternative is Voluntary Sequestration. This process should only be considered when debt counselling cannot exist. The effects on your credit profile is much worse and you will lose your assets where debt counselling will protect your assets and is removed from your credit profile as soon as you have settled all your debt.Voluntary Sequestration is when a person applies at the court to surrender all his assets to creditors.The court grants voluntary sequestrations to the consumer. The court appoints an Administrator or Trustee who will be in control of your estate. The consumer surrenders all assets to the administrator. All assets are then sold by Administrator. Costs are deducted and the remainder of the funds is divided between all creditors. Any balance then left on the account of the consumer is written off by the creditors and they may no longer pursue you for payment.This is the biggest advantages of sequestration. The consumer will come out clean with no debt at the end of the process. The consumer will have a clean start in life. No creditor or debt collector may call you for outstanding money again. For many people this is a great option to get rid of all the creditor calls and sleepless nights from worrying about your debt.                                                                           

The Disadvantages of sequestration:

  • You will be insolvent for at least the next 2 to 4 years. 
  • There are circumstances where you can apply for rehabilitation after 18 months, however this is an exception rather than the rule.  For your insolvency period, you will not be able to apply for any credit, have a cheque account or credit card.
                                                                                                                                                           

The Advantages of sequestration:

Depending on your ability to honour arrangements with the curator

  • Your salary and other income is still your own and you do not have to pay any creditor.
  • Only your creditors are notified of the process and not your employer or any other person.
  • You will not have to attend Court.
  • In some instances your curator can arrange with your financial institution (the bank) to keep your vehicle and if your installments are up to date, to enter into a lease agreement.
                                                                        

Liquidation

Businesses are different and do not need to own assets or cash.  The reason for this is, because, in terms of the Companies Act, the Close Corporations Act and the Trust Property Control Act, a Company, or a Close Corporation or a Trust (“the entity”) is insolvent the moment its liabilities exceed its assets. The entity must then cease trading.  For this reason the entity does not have to own assets to be liquidated. 

TO LIQUIDATE OR TO BE LIQUIDATED?

It is a difficult decision to make whether to liquidate an entity or not. A bigger worry is always what if a creditor applies for the liquidation of the entity.It is always better for the entity to bring a voluntary liquidation application first, as opposed to being liquidated by a creditor.  If you bring the liquidation application voluntarily, you are in control of the process. It is just a calmer and more controlled process.  You don’t want to give control to a creditor, because if a creditor brings the liquidation application, it is usually aggressive. They push harder and can make life difficult for you. They also nominate the liquidator.  If they have a nasty liquidator then you may be in for a nasty experience. If it is (hopefully) your nominated liquidator, you have a better chance.

Reduce monthly installments & interest rates to make your debt more affordable

Things happen in life and circumstances change, some due to our own doing and others happen due to reasons beyond our control. Whatever the reason is this is reality and more and more south Africans are finding themselves over-indebted and unable to meet their debt obligations.

Debt counselling can help you reduce your monthly repayments and interest rates to enable you to pay back your debt and still afford to live.

Debt review can protect your assets and help you avoid legal action, it is in our nature to postpone these things and think it will get better and once we eventually do something about it it's too late.

Don't postpone, contact us today before it is too late...

Debt counselling is not an embarrassment but a show of courage to take the first step to relieving your financial stress and the reality of been debt free.

We have enough worries and stress in life, you don't have to add financial worries to the list we can help...Contact us today.

Are you Drowning in Debt?

Are you over-indebted?

  • Are you unable to pay your debt and have enough money left over to cover your day to day and Monthly living expenses?

  • Are you using credit cards and loans to pay debt, buy food and other necessities?

  • Are you missing payments on some debts to be able to pay others?

If you answered yes, to any of these questions then you are over-indebted and we can assist you to become debt free again, debt counselling is a proven method of becoming debt free and we have assisted many consumers to become debt free again.

Is your information correct at the Credit Bureaus?

You have the right to challenge your Credit Record with the Credit Bureaus

You are entitled to one free credit report per year which you can obtain from the credit bureaus. When you request a credit report, the said report must disclose identical information to that which will be displayed should such a  report be provided to a third party.If the accuracy of the consumer credit information is according to you inaccurate you can challenge this information by taking the following steps:

  • The consumer must contact the credit bureau concerned to raise an objection or lodge a complaint (either TransUnion ITC or Experian);
  • The bureau has 20 business days in which to resolve the issue;
  • If the bureau is unable to resolve the issue, the consumer should refer the matter to the Credit Information Ombudsman (CIO);
  • Should the CIO be unable to find a resolution, the NCR will intervene on the request of the CIO.

It is of utmost importance that you know that your record is inaccurate information can effect your future.

Should you need assistance with your debt please contact us, we offer a free no obligation debt evaluation to determine your over-indebtedness.

072 044 7777                                                                 info@tdtgroup.co.za