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Is Debt Rescue worth it?

Gadgetology

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Hi guys, I got a call today from a company doing debt review, counselling, rescue etc etc. What is your opinion of those companies? They say they can reduce my monthly instalments up to R5500 per month which is a big deal for me right now. But in the long run is it worth it? Are they legit? The company that called is called National Debt Advisors. Let me know what you think before I make a decision.
 

ThanaPoeth_ZA

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I would say no. There are a ton of companies offering to 'reduce your debt' so you just pay them an amount each month, but they end up not paying the people you actually owe money to, not to mention that in your contract it would state that you can't make any new debt while under debt review (which even after settling all your debt can take 5-10 years before it disappears off your credit report).

Basically in the end this is not worth it at all.
Anyhow my 2c on the matter as I had looked at this in the past as well...
 

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Hi guys, I got a call today from a company doing debt review, counselling, rescue etc etc. What is your opinion of those companies? They say they can reduce my monthly instalments up to R5500 per month which is a big deal for me right now. But in the long run is it worth it? Are they legit? The company that called is called National Debt Advisors. Let me know what you think before I make a decision.
Do not, for any reason, go to a debt rescue company. They add to your debt.

Contact every company you owe money to and explain the situation and come up with a proposal to enable you to pay the debt back and them not to force you to default on your loans.

Debt rescue companies are the ambulance chasers of the finance world. Fuck. Them.
 

Bird87_ZA

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Go to your bank and consolidate all your debt.

Smaller payments and one lump sum to tackle and keep track of. :)
This. Consolidate.

Also, don't just go to your bank. Go to different banks. And look for the best rate. Also tell them you got these terms at so and so, can they match or better.

I consolidated all my debt and it worked out cheaper for me. I now sit with very little bad debt (wifes car and a bit for our wedding).
 

realkingkam

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Debt rescue is legit ... I used sandton DC ... the negotiated close on no interest on your debt which in itself pulls back almost half of what you would have paid... banks ect don't give a rat's ass what your situation is they want there payments with interest

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Tander

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Do not do this. It will ruin your financial history / record for years to come. You'll end up paying more overall to the rescue company as well.
 

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LAST Resort. Not advisable at all though
 

heinreich

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100% no. Rather rob a bank or pay the people you owe money R50 a month and tell them that's all you can afford than resorting to these sharks. Its just a new kind of hole/grave.
 

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100% no. Rather rob a bank or pay the people you owe money R50 a month and tell them that's all you can afford than resorting to these sharks. Its just a new kind of hole/grave.
My wife worked at a place that handled peoples debt for a while. There are really people that are stuck in ditches and ruts due to medical bills and so on. These people they really try help and it works as they have no other option.

But then there are people that have 3 cars and spend R20 000 a month at woolies and apply for this because they do not want to sell one of their cars.

But yes, Andy kind of Debt rescue is very very very last resort and not a good idea
 

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Debt rescue is legit ... I used sandton DC ... the negotiated close on no interest on your debt which in itself pulls back almost half of what you would have paid... banks ect don't give a rat's ass what your situation is they want there payments with interest

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But did you seek them or did they seek you?

I reckon if someone contacts you directly without you first requesting that contact they can fuck right off. I reckon there are companies out there that do try to help, as others have said as a last resort to people who know they are just in the hole for all eternity, but those definitely won't direct market themselves. Only services which will cost you unnecessary money and land you further in the hole direct market (yes, this includes Banks).
 

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The only way I can see a dept counseling service actually help is if they do some of the following:

- Negotiate a better interest rate at ALL the financial institutions where you have debt.
- Assist you in consolidating all your credit facilities at one bank.
- Assist in curbing your spending and getting rid of assets/unnecessary credit to alleviate debt.

Mostly they just give you a big loan to cover all your debt. This loan has a high interest rate, think overdraft big, then they spread it over a long long time so that monthly payments seem affordable. To get this amazing service from them, you basically sign away everything you own as surety. Then when you default with them, rip EVERYTHING you own and you get to meet a nice repo man.

Please don't do the more debt thing. It really does not make sense to make more debt to settle current debt.

Downscale. Get a smaller car. Get a smaller apartment. Get a smaller computer. Get a small cellphone. Cook at home. Buy bulk. If you don't do this already, your expendable income would increase greatly, and you will have more monies available to settle your debt.
 

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- Negotiate a better interest rate at ALL the financial institutions where you have debt.
- Assist you in consolidating all your credit facilities at one bank.
- Assist in curbing your spending and getting rid of assets/unnecessarily credit to alleviate debt.
This is exactly what debt counseling does and is supposed to be.

If they just give you money, then it is a loan shark and not debt counseling indeed.

Most people who apply for debt counseling are already in a position where there possessions will get repo'd. So if done correctly it is a last life line
 

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This is exactly what debt counseling does and is supposed to be.

If they just give you money, then it is a loan shark and not debt counseling indeed.

Most people who apply for debt counseling are already in a position where there possessions will get repo'd. So if done correctly it is a last life line
Fair enough!

I've had family members go the debt counseling route and all they managed to do was get more debt...

I have no personal experience with these companies though... When my dad had too much debt he sold our house. Then bought a new one when things got better.
 

Flex

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Fair enough!

I've had family members go the debt counseling route and all they managed to do was get more debt...

I have no personal experience with these companies though... When my dad had too much debt he sold our house. Then bought a new one when things got better.
What they are supposed to do is work out your budget for you. You complete a form very honest and translucent regarding your monthly income and exact expenses. They then calculate what you can afford to pay off and prioritize your debt. They then contact each debtor with a letter and tell them what you are able to pay each month, the debtors hardly refuse as it is better than receiving nothing. A small fee is indeed included in the monthly payment for the debt counseling.

But your advice about down scaling is spot on!
 

eY_v3Tt1e

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Fair enough!

I've had family members go the debt counseling route and all they managed to do was get more debt...

I have no personal experience with these companies though... When my dad had too much debt he sold our house. Then bought a new one when things got better.
Exactly this! This is my gf in a nutshell. She has been struggling for 2 years with debt rescue, and she will struggle for 6 more years, because she went the debt rescue route. They take a monthly fee of R400, (this is apart from her actual debt) from her every month as "admin fee". R400 x 8 years?... The longer repayment also means a lot more interest.
 

SCHUMI4EVER

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What they are supposed to do is work out your budget for you. You complete a form very honest and translucent regarding your monthly income and exact expenses. They then calculate what you can afford to pay off and prioritize your debt. They then contact each debtor with a letter and tell them what you are able to pay each month, the debtors hardly refuse as it is better than receiving nothing. A small fee is indeed included in the monthly payment for the debt counseling.

But your advice about down scaling is spot on!
Very good insights. Been through it yourself or just watched an ep of Oprah back in the day?
 

SCHUMI4EVER

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Exactly this! This is my gf in a nutshell. She has been struggling for 2 years with debt rescue, and she will struggle for 6 more years, because she went the debt rescue route. They take a monthly fee of R400, (this is apart from her actual debt) from her every month as "admin fee". R400 x 8 years?... The longer repayment also means a lot more interest.
400x8? if only lol, you're missing a 12 in there. Also how did 6 turn into 8?
Someone needs more coffee stat!
 

KoL

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Plus it's a bitch to get you cleared at the different Credit Bureau's when your debt is payed up or if you chose to opt out of Debt Review (not sure if the latter is possible anymore).

A company called Summitfin accidently placed me under debt review sometime last year, I only became aware of it when I wanted to open an account. Never spoke to Summitfin before, never sent them documents they just placed me under Debt review at the Bureau's. To this day, after 7 months of almost daily emails back and forth between them & the NCR I have not been cleared.
 

Flex

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Exactly this! This is my gf in a nutshell. She has been struggling for 2 years with debt rescue, and she will struggle for 6 more years, because she went the debt rescue route. They take a monthly fee of R400, (this is apart from her actual debt) from her every month as "admin fee". R400 x 8 years?... The longer repayment also means a lot more interest.
Then she did 0 research before applying wherever she applied. Unfortunate, but they do not force you into anything, people apply for it. Some think it is a quick and easy way out.
 

Flex

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Plus it's a bitch to get you cleared at the different Credit Bureau's when your debt is payed up or if you chose to opt out of Debt Review (not sure if the latter is possible anymore).

A company called Summitfin accidently placed me under debt review sometime last year, I only became aware of it when I wanted to open an account. Never spoke to Summitfin before, never sent them documents they just placed me under Debt review at the Bureau's. To this day, after 7 months of almost daily emails back and forth between them & the NCR I have not been cleared.
How does this accidentally happen? Can't be done without you applying
 

SCHUMI4EVER

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You need some coffee meneer :) - i said "8 years" - and she's already paid 2 years, with 6 more to go.
Eh, I guess we both do.
Overlooked the 2. Though your maths is still wonkier than mine in this case :p
 
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realkingkam

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But did you seek them or did they seek you?

I reckon if someone contacts you directly without you first requesting that contact they can fuck right off. I reckon there are companies out there that do try to help, as others have said as a last resort to people who know they are just in the hole for all eternity, but those definitely won't direct market themselves. Only services which will cost you unnecessary money and land you further in the hole direct market (yes, this includes Banks).
I reached out to them ... you can remove the debt review process at any time.. and once your debt is paid you revert back to normal .. as if it never happened. Only downside is no more debt until you paid everything off

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SauRoN

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If you are still in a position of relative safety to fix your own problems then rather do that.

You don't need someone else to help you do that, you just need to face reality and sort it out yourself.

It just requires being honest with yourself.
 

SCHUMI4EVER

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I reached out to them ... you can remove the debt review process at any time.. and once your debt is paid you revert back to normal .. as if it never happened. Only downside is no more debt until you paid everything off

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That is a VERY important distinction to make though. Huge difference between you seeking someone out after research and being contacted out of the blue as the TC was.
 

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