Sequestration and administration would be alternative options for over-indebted consumers.  Both of which is non beneficial to client as it is very expensive, client can lose all assets and have a tarnished credit record for as long as 9 years.  A benefit of Debt Counselling is that your assets are protected for as long as you under debt review. Therefore this route of managing your finances and getting you back on track would be most beneficial for an over-indebted consumer.

Debt review is where you are able to pay one affordable amount each month to a National Payment Distributing agency who will then distribute your money according to the debt restructure plan set out by our accredited software.  All your assets will be protected whilst you being under review, meaning that no further legal action can be taken against you.

You can by all means do your own restructuring, however as registered debt counsellors we have been trained to help you deal with difficult credit providers.   We deal with your debts in an unbiased way, as our main focus is to get you out of debt as soon as possible.

When you are suffering under the yoke of over-indebtedness, then you need a debt counsellor.
A consumer is considered to be over-indebted if the money available after payment of essential expenses is not enough to pay all other debts.  Herewith some indicators of over-indebtedness:-
A consumer is over-indebted when he/she cannot service all his/her debts in a timely manner as agreed in the credit agreements.  The following are indicators of over-indebtedness:-

• You use your credit card and overdraft facilities to pay debts and buy food and other necessities;
• You borrow money to pay other debts;
• You skip payments on some accounts in order to pay others because you cannot keep up;
• You cannot pay your bills at the end of the month;
• You receive letters and summonses from creditors and/or lawyers;
• You are considering being placed under administration;

You have judgments granted against you.

Avoid getting more debt, rather downgrade and change your lifestyle! It is important to remember that a change in lifestyle is the first step in creating a better environment for ourselves as consumers in these challenging times. You will need to cut some things and/or make adjustments in order to stay afloat. 
Things you need to cut/adjust are:

1. Alcohol
2. Tobacco / cigarettes
3. Entertainment
4. Club membership
5. Pay/Satellite TV
6. Holiday clubs
7. Gambling
8. Where possible use public transport

You will find that by cutting these items out of your budget, you have more cash. You then have the option to either save that money or pay more on your account and therefore reducing your monthly debts.