how to get out of debt fast, debt review process, debt counselling

How to Get Out of Debt Fast

The moment financial hardship strikes and panics sets in, the first thing most people do is hop on to Google and search for ways on how to get out of debt fast.  This is a very dangerous rabbit hole to go down as misinformation can quickly have your entire life spiral out of control.

Loan Sharks & Opportunists Prey on the Financially Vulnerable

Unlike national debt counsellors such as Sandton Debt Counselling who are regulated and accredited by the National Credit Regulator, there are many people offering a ‘quick fix’ to get out of debt fast with no protection.  These companies are not regulated by any authority, which means they can lend you money according to their terms

When you’re desperate, you might be prepared to sign anything to get a loan… but know that these moneylenders typically charge exorbitant interest rates, and under illegal conditions.  If you’re unable to repay a loan shark, they can seek to recover their funds in any way they choose – even ways that pose a direct threat to you and your family’s lives. 

With no regulating or governing body to offer you protection and legal recourse, you’ll be left to your own devices.

Using a Personal Loan or Credit Card to Settle Your Debt – The Ultimate NO-NO

Depending on how bad your credit profile is at South African credit bureaus, you might still be able to qualify for loans at reputable institutions, even your bank.  Although your intentions might be good by wanting to consolidate your own debt – this is one of the worst mistakes you can make.  The same applies to using credit cards to settle your debt, and here’s why… 

The average interest rate on a personal loan is 27.5% and 17.5% on credit card.  Firstly, having large amounts in arrears on credit cards bring your credit score down.  Secondly, depending on how indebted you are, your repayment will take much longer as a large portion of it will comprise of paying on interest alone.

In comparison, the average debt review interest rate is between 0% and 1% on unsecured debt.  On secured debt, meaning assets such as your house or car, the average interest rate under debt review is 5.75%.  This all depends on your affordability and is case dependent.

What About a Consolidation Loan?

An alternative is to take out a consolidation loan.  Although in principle this sounds like a good idea, you’re still looking at interest rates of between 9% and 27.5% – depending on your credit rating.  Many of our clients at SDC attempted debt consolidation on their own by means of consolidation loans first.

What ultimately led to them opting for debt review instead is the massively reduced interest rates, and the security that the debt review process offers – one being protection from creditors.

Opt for Debt Review as a Safe & Affordable Solution

Instead of asking how to get out of debt fast, you should be asking, ‘how to get out of debt safely’.  The reason for this is that there is no fast way – so whichever way you choose, you need to know that you’ll be protected.  The best and safest way to apply for debt consolidation is through the NCR debt review process.

At Sandton Debt Counselling, our clients are protected by law under the National Credit Act.  We’ll restructure your debt and negotiate lower interest rates on your behalf.  You’ll be able to repay your debt in one affordable monthly payment – and you won’t have to worry about any further action from creditors.

Contact Sandton Debt Counselling for NCR Accredited Debt Review

Before you head to Google in search of ways on how to get out of debt fast, get in touch with SDC and we’ll guide you on the best way to reach financial freedom.  Our assessment is free – simply complete our online contact form and we’ll call you back in two hours. 

A question we often get is: how long does debt review last?  Although the average period is 3 – 5 years, this varies depending on your situation.  All of this will be covered during our free assessment.  We might not offer an instant fix, but at Sandton Debt Counselling we make it affordable to get out of debt, whilst keeping you protected!