Why being under debt mediation is good for you as a consumer!
With everything going on in South Africa who wouldn’t want to be placed under debt mediation. Lets recap on what is debt mediaction:
Debt mediation is the process where a third party talks on your behalf to your creditors and negotiate to try and reach an agreement on your debt payment . This could be an effective way to reduce your monthly payments and get back on track with your finances. What most South Africa’s don’t know is they spending 70% of the salary paying off their debts. With so much debt most South Africans are dealing with most people are not aware that debt mediation is one way to reduce the load. Being under debt mediation is basically a win- win situation for both you as the consumer and your creditors, in terms of you will be able to manage your finical situation and have a good relationship with your creditors.
How is being placed under debt mediation going to assist you as SA consumer?
On the 26th of May most people are not aware that The South African Reserve bank uplifted/ amended the repo rates by a half a percentage point of 8.25%. Yes you reading right 8.25%. We went from 3.75% to 8.25%. It is said that this was a unanimous decision by its monetory policy committee. This increase is the highest lending rate since 2009. With the repo rate being increased, this means that everything is going up that includes your current accounts that you are paying for each and every month. That means if you currently paying your credit card account at African BANK and the installment that was agreed on is R620 from the 26th of May it would have been amended to R710. Meaning you are paying more then you agreed on, this is where DEBT MEDIATION comes in and saves your financially status. With Debt Mediation there is an agreement set between you and your creditors to reduce the amended installment to an installment that you can afford making you save each and every month. With debt mediation your installment is reduced to a certain percentage. Debt mediation is a process whereby a third party mediator assists you and your creditors to come to agreement on your debt repayments. The mediator will facilitate discussions between you and your creditors and help you find a solution that is acceptable to both parties.
Debt mediation can be an effective way to reduce your outstanding debt and make repayments more manageable. It can also improve your relationship with your creditors, as you will be working together towards a solutions. If you are struggling to repay your debts , or are at risk of defaulting on your payments , then debt mediation could be a good option for you . However , it is important to remember that this not a “tada/magic” solution , you will still need to make regular debt repayment in order in order to eventually clear your debt.
This is where we as TELEPRO CONCULTANTS come in we are a company that offers 2 types of service which are: Debt Mediation and Debt Cancellation. We as Telepro Consultants come in and save your financial stresses, since we do offer debt mediation that means that means we are the third party between you and your creditors. We communicate on your behalf with your creditors stating to them that you would like to reduce your monthly installments. At Telepro Consultants we reduce your monthly installments up to 60% so if your monthly installments add up to R1200 AND MORE we are able to assist you by reducing those monthly installments.
The first step in debt mediation is to provide the debt councellor with with all your financial information , including your income, expenses , and debts. The counselor will then assess your financal situation and create a budget for you, which would be your reduced amount.
Once the budget has been created, the debt counselor will contact your creditors and try to negotiate lower interest rate and monthly payments and make it easier for you to pay your debts.
The goal of debt mediation is to help you get out of debt as quickly as possible so that you can start rebuilding your credit. While it can be a lengthy process, it is an effective way to reduce your debts and get back on track financially.