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Is it too late?

Many people only start looking for help with their debt when things get really serious.

Maybe they have received a summons, or a scary letter lands in their inbox. Maybe one of their debts has already even gone to court and now a judgment has been granted.

At that point, it can feel like it is too late to get help.

The good news is that debt review can still help in a big way.

How?

Well, since a judgement has been granted or legal action is far along it may not be possible to directly include that particular debt in a new debt review repayment plan. That does not mean however, that there is no benefit to entering debt review to sort out other debts and your monthly running costs.

‘The good news is that debt review can still help in a big way’

While the judgment debt cannot be included in the formal proposal to credit providers, the rest of your debts can.

That in turn creates space in your budget to manage payments towards the debt with the judgement.

An Example

Here is a simple example to explain how it works.

Imagine these are your figures:

 

Before Debt Review:

Consider how your finances are hit when you already have a lot of debt but now have a judgment taking a large portion of your available money each month.

    • Income: R15 000 per month
    • Judgment debt: R2 000 per month (this must still be paid separately)
    • Other debts: R10 000 per month
    • Left for monthly living costs: R3 000

Which is not enough for groceries, transport, or school fees

 

During Debt Review:

Now, imagine you rather get help and enter debt review.

Your Debt Counsellor would negotiate lower instalments on your other debts.  Those monthly repayments could drop from R10 000 to, let’s say, only R5 000.

Now the figures look like this:

    • Income: R15 000 per month
    • R5 000 toward other debts (under debt review)
    • R2 000 toward the judgment debt (paid separately)
    • R8 000 left over for living expenses

That is a much more realistic and balanced way to manage the situation.

Even If You Have a Judgment or Get a Summons

Even if one debt has already gone to court, you can still get help through debt review.

It is still worth considering, especially if you have other debts.

 A Debt Counsellor will look at your full financial picture and help you create a plan you can realistically afford. That will include being able to pay off the debt with the judgment.

‘The key is not to wait until things get even worse’

The key is not to wait until things get even worse. Reaching out for help can turn a stressful situation into a much more manageable one.