We explain how debt restructuring works, which debts can be restructured, and how to get started. Debt Sage’s consultants are ready to help you restructure your debt.
On this page:
What is Debt Restructuring?
If you’re unable to keep up with your debts and feeling overwhelmed, debt restructuring offers a way out. When a registered debt counsellor helps you with debt restructuring as part of debt review (also known as debt counselling), they will renegotiate your interest rates, lower your amount of debt, and consolidate all your debt into a single monthly payment. The goal is to adjust your monthly payments to a manageable amount that gives you enough breathing room for your household expenses, so that you can steadily and sustainably pay off your debt.
Benefits of Debt Restructuring
Effective debt restructuring as part of debt review can:
Lower Your Monthly Payments
Restructuring can result in reduced monthly payments, making it easier to manage finances and meet other essential expenses.
Reduce Your Interest Rates
Negotiating with creditors can often lead to lower interest rates, decreasing the overall cost of the debt.
Help You Avoid Bankruptcy
By making debt more manageable, restructuring helps avoid the severe consequences of bankruptcy, such as long-term credit score damage and losing your assets.
Improve Your Cash Flow
Lower payments and interest rates can improve your cash flow, taking the pressure off you and allowing for better financial planning and stability.
Consolidate Your Debts
Debt restructuring can consolidate multiple debts into a single, more manageable payment, simplifying the repayment process.
Protect Your Assets from Legal Action
While under debt review, creditors are restricted from taking legal action against you to collect the debt. This protects assets like your home and car.
Reduce Your Stress
Having a clear plan to manage and eventually eliminate debt can significantly reduce your financial stress and anxiety.
Improve Your Credit Score over Time
Successfully adhering to a debt restructuring plan can gradually improve your credit score, as debts are paid down and accounts are brought up to date.
Customised Repayment Plan
Restructuring allows for a repayment plan tailored to your specific financial situation, making it more sustainable.
Access to Counselling
Debt Sage’s consultants will be with you every step of the way if you choose us to help you restructure your debt. They will help you to build better financial habits and avoid future debt issues.
Choosing a Debt Restructuring Consultant
When choosing a company or person to help you with debt restructuring, you should make sure that:
- The debt consultant is licensed by the National Credit Regulator (NCR), like Debt Sage’s debt consultants are;
- The debt consultant discusses all the possible options available to you to deal with your debt problem;
- You’re told clearly at the start how much it will cost to arrange the debt restructuring plan and how you will pay that cost;
- You understand what will happen if you withdraw from the plan.
How Debt Sage can Help You with Debt Restructuring
As a small team, we offer personalised service, contrary to what you might experience when dealing with a large debt counselling company. We’re specialists, we are independent and transparent, we have deep experience, and we will treat you with the utmost confidentiality. Speak to us today!