When do I need to ask for help with my debt?

The stress of financial struggles can take a toll on your health, relationships, and overall well-being. Realising it’s time to seek help with your debt is a brave step towards reclaiming control of your life.

We understand how difficult it can be to ask for assistance, and we’re here to offer compassionate, expert advice.

In this blog, we’ll discuss the burning question: “When do I need to ask for help with my debt?”

We’ll help you recognise the signs that you may benefit from debt counselling or other debt relief options.

Signs You May Need Help with your Debt

Struggling with Monthly Bills: If you find it difficult to pay your monthly bills and expenses on time, or if you are skipping some payments to afford others.
Relying on Credit for Living Expenses: Using credit cards, overdrafts, loans, or other forms of credit to cover your living expenses or to pay off other debts.
Experiencing Legal Issues: Facing legal actions such as wage garnishments, property repossessions, or court summonses related to unpaid debts.
Using One Debt to Pay Another: Taking out new loans or using credit to pay off existing debts, creating a cycle of borrowing that becomes hard to break.
Maxing Out Credit Limits: Reaching or exceeding the credit limits on your credit cards or overdrafts, leaving no room for unexpected expenses.
Receiving Disconnection Notices: Getting notices that your water and lights will be disconnected due to unpaid bills, indicates severe financial distress.
Experiencing Financial Stress: Feeling stressed, anxious, depressed, or hopeless about your financial situation and its impact on your personal and professional life.
Avoiding Financial Reality: Avoiding opening your mail, checking your bank statements, or talking to your creditors because you are afraid of what you will find out.
Lacking Financial Security: Having no savings, emergency fund, or financial plan for the future.

If these signs sound familiar to you, then it might be time to seek assistance with your debt. Asking for help is not an indication of weakness but a demonstration of strength and responsibility. By reaching out for support, you are taking a crucial step towards regaining control of your finances.

What is Debt Counselling?

Debt counselling is a legal process that allows you to restructure your debt payments according to your income and expenses. When entering the Debt Counselling Process, a registered debt counsellor will negotiate with your creditors on your behalf and create a new repayment plan that is affordable and realistic.

You will also be protected from legal action and harassment by creditors while you are under debt counselling. Why not try out our free debt calculator to see if you are over-indebted?

Benefits of Debt Counselling

Reduced Monthly Payments: Debt counselling can help you reduce your monthly payments, making them more manageable.
Lower Interest Rates: You may benefit from lower interest rates on your debts.
Protection from Legal Action: While under debt counselling, you are protected from legal action by your creditors.
Avoiding Blacklisting: Debt counselling can help you avoid being blacklisted and further damage to your credit score, while placed under Debt Review.

What are the Alternative Debt Relief Options?

Debt counselling is not the only option for getting help with your debt. There are other alternatives, each with its own advantages and disadvantages:

Debt Consolidation

Combines Multiple Debts: This option involves combining all your debts into a single loan with one monthly payment.
Simplified Payments: Easier to manage, but may come with different interest rates and terms.

Debt Settlement

Negotiating a Lump Sum Payment: Settling your debt for a lower amount than you owe by negotiating with creditors.
Potential Credit Impact: Can significantly impact your credit score or creditors may not agree to the reduced amount.

Sequestration

Sequestration: Sequestration is a legal procedure where a consumer’s assets are managed by a court-appointed trustee. The trustee is responsible for selling these assets to gather funds to repay the consumer’s creditors.
Long-term Consequences: Can severely impact your financial future and credit rating.

Administration Order

Court-mandated Repayment Plan: This is an order issued by the Magistrate’s Court specifying various amounts that an individual is required to pay towards their outstanding debt owed to one or more creditors.
Court Involvement: Requires a court to manage your repayments.

Each of these may not be suitable for everyone. Therefore, it is important to do your research and consult a qualified and reputable debt expert before making any decisions.

Taking Action

If you are ready to ask for help with your debt, contact us today for a free and confidential assessment. We will help you find the best solution for your situation and guide you through the process step by step.

How to Get Started

Contact Us: Reach out to Debt Rescue for a free consultation.
Assessment: We will assess your financial situation to understand your needs.
Repayment Plan Development: We will develop a customised debt relief plan for you.
Implementation: Our team will negotiate with your creditors and implement the plan.
Ongoing Support: We will provide ongoing support and guidance throughout the process.

Remember: Debt Can Happen to Anyone

Debt can happen to anyone, and it’s important to address it before it spirals out of control. Seeking help is a proactive and responsible choice that can lead to a more secure and stress-free financial future.

Are you struggling with debt while earning an income? If so, let our expert debt counsellors provide a no-obligation, cost-free assessment to consolidate and reduce your monthly repayments for immediate financial relief.