debt consolidation

Debt counselling is also known as debt review. Debt Review is a process in terms of the National Credit Act for over indebted consumers in South Africa and the purpose of the act is to protect the over indebted consumer against credit providers. Debt counselling is a formal process regulated by NCR. Debt counsellor will deal with your creditors and come to an agreement that allows you to cover your living expenses and apportion the remainder of your available funds to your creditors. Debt Counsellors will conduct an independent enquiry into your financial circumstances and make recommendations to Credit Providers and the courts concerning restructuring your debt or even suspending "reckless" credit agreements. You may not actually be "Over-Indebted" and qualify for "Debt Review", in this case the Debt Counsellor will assist you to work out a better monthly budget which will enable you to repay your debts effectively.

Versus

Debt consolidation is a loan and does not cater for the relief especially if you are over indebted or struggling financially. The other major issue is the exorbitant interest rates charged. This may not help with your current situation. There is also no legal protection against repossession.