What Is a Debt Repayment Plan?
When you use credit, whether it is a credit card, home loan or clothing account you ultimately need to repay that debt. How much and when you repay that debt is usually decided by the creditor and forms part of your credit agreement.
So, the meaning of a debt repayment plan is the “when” and “how much” of repaying your debt.
For example, if you have an interest-free clothing account of R 6000 and your credit agreement requires you to repay that debt within 6 months your debt repayment plan is to repay R 1000 per month, for 6 months.
Keeping up to date with your debt repayments plan is crucial for
- keeping track of your progress when it comes to repaying your debt,
- maintaining a clear credit record and
- preventing creditors from taking legal action against you.
But life happens and becoming over-indebted is a reality many in South Africa face.
What Happens When I Fall Behind on My Debt Repayment Plan?
Because your repayment plan forms part of a legal agreement you have with your creditors, falling behind on that plan could have legal consequences – the direst being litigation or repossession of your belongings. Nobody wants to go through that.
That is why it is so important to keep up with the payments. And if you find that you simply can’t then you need to take responsibility for the situation and make a plan. You can start by contacting your creditors and try to negotiate a better-suited repayment plan, one you can afford. You can also opt for our debt management program, which includes debt repayment services for improved debt repayment terms.
How Do We Bring Financial Relief Through Our Debt Repayment Services?
Our debt repayment service is one of our biggest financial advantages we offer to our clients.
Through our debt management program, we re-evaluate your financial situation, and debt obligations, and rework your debt repayment terms to suit your pocket. Our program gives us a legal right to negotiate with your creditors on your behalf and to drastically reduce your monthly debt repayment plan (up to 60% reduction in some cases).
On top of that, we also consolidate all your debt obligations into one reduced debt repayment plan. So, you don’t have to worry about juggling different accounts each month.
Whether you choose to negotiate with your creditors or use our debt repayment plan services, just make sure you stay on top of your debt repayment plan. It is an essential part to keep your financial independence.
If you would like more info about our debt management program you are welcome to get in touch by filling in our online contact form on this page.