Debt Settlement

What is Debt Settlement?

Debt settlement involves negotiating with your creditors and asking them to let you settle your account for less than you owe. This saves you money by reducing the total amount that you need to repay. Debt settlement is most often used by consumers who:

• are struggling to pay old outstanding debts. Old outstanding debts can often become difficult to service, owing to inflated legal fees, collection fees, and interest.
• receive a lump sum of money and wish to settle their debt in one go, e.g. using a pension pay-out or retrenchment package.
• have access to a debt consultant as part of debt review, who will negotiate with creditors on their behalf. Debt consultants are often able to negotiate significant reductions and bring you big savings. They can also negotiate better settlement terms, e.g. to lower your monthly amount to give you breathing room with your living expenses.

Benefits of Debt Settlement

Successful debt settlement negotiations lead to:

• Relief from overwhelming debt;
• Savings for you, through reduced outstanding balances, interest rates, and fees;
• Repaying your debt in less time;
• Helping you walk away from loans which qualify as prescribed debt in terms of Prescription Act 68 of 1969.

Debt could become legally classified as prescribed debt when:

• you have not made any payment in respect of the accounts in the last three years;
• you have not signed any acknowledgment of debt; and
• the creditor provider you owe has failed to take judgement against you for the recovery of the debt.

How Debt Sage Can Help You with Debt Settlement

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 our consultants today!