There are numerous benefits to Debt Mediation that afford everyday South African consumers the opportunity to minimise their money related concerns, while still legally paying back all debts owed. At Credit Rehab, we deal with clients from all walks of life facing diverse and in-depth debt related issues, by providing debt solutions that prioritise your journey to financial independence.
Clients considering Voluntary Debt Mediation often approach our Credit Rehab team for professional insight and financial perspective, not fully understanding what exactly this process entails. Voluntary Debt Mediation involves you as the consumer coming together with your lender/lenders, with the guidance of a knowledgeable mediator, in order to restructure your monthly payments to them, as well as address any disputes that have occurred from potential late or missed payments. Although consumers often attempt to negotiate lowered monthly installments with their creditors, they rarely succeed on their own, and find the process more successful when it is directed and overseen by a trusted expert.
Voluntary Debt Mediation, also referred to as debt reduction or debt elimination, is the type of debt management solution that is well suited to individuals who are overwhelmed by their financial obligations but are still able to make the necessary monthly payments. Debt Mediation allows you to pay back less than your existing total amount of debt each month, which not only helps you to avoid becoming blacklisted, but also makes it possible for you and your family to live more comfortably from one paycheck to the next. Another question we are often asked is the effect of Debt Mediation on an individuals credit score – the answer is not too scary – though it is likely that your credit score will drop initially, it most often increases dramatically after the successful completion of Voluntary Debt Mediation.
The Debt Mediation process usually takes between 12 and 48 months, with the main difference being that you will no longer be paying your creditors a fixed monthly amount – instead, the money owed to your creditor/creditors will be placed in a trust account which grows over time and is monitored by our Credit Rehab team – some individuals are able to add more money into the trust account at certain times of the year, speeding up the process and allowing for quicker resolution. In time, viable numbers will reflect in your continually growing trust account, after which our Credit Rehab team can begin to disperse these funds, by paying back your existing debtors one at a time.
At Credit Rehab, we take the time to not only acknowledge but also appreciate your personal financial circumstances and needs, which allows us to approach Voluntary Debt Mediation with your exact expectations in mind. Our services and fees are legally regulated and allow us to be as transparent and upfront as possible with you, our valued clients. Our team of competent and result driven financial experts always go the extra mile to deliver the best results possible to each client, as they undertake their journey to a better financial future.