The Purpose Of Bad Debt Consolidation


The process of bad debt consolidation is the merging of a variety of outstanding debts and forming a single outstanding debt with them. Debt consolidation is done for the following reasons:

  • To obtain a lower interest rate for outstanding debts.
  • To secure a fixed interest rate for outstanding debts.
  • To have the convenience of only paying off one loan amount.

Bad debt consolidation can be done in the form of an unsecured loan, but in most cases it is done after debt counselling has been provided and is secured against some form of collateral such as a house or vehicle. Many debt consolidation companies are able to negotiate a cheaper loan pay back rate especially if your debt places you in danger of becoming bankrupt. Consolidating your debt is usually advised if you are struggling to pay all your outstanding expenses each month. A consultant will usually assess your financial situation with you and then provide you with a complete finance restructuring plan. This plan is what is presented to your creditors and on their approval is made valid and binding with a court order.

Debt consolidation is particularly advisable for those who are struggling to make ends meet. It is especially helpful to those who are paying off credit card debt as often a lower interest rate can be secured. You can only apply for consolidated debt if you are employed and over indebted.

DebtCor is a national company offering debt relief and bad debt consolidation services across the whole of South Africa. With their assistance you can consolidate debt, receive debt counselling, access your credit report and even make use of the debt calculator. Ensuring that you can be in control of your finances once more is the main aim of this particular company. Take the time to contact DebtCor and discuss your options with them without delay.


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