File photo
THE FACTS
GRANNY Sthege from Diepkloof, Soweto, said when her husband lost his job she underwent debt counselling thinking it was debt consolidation.
She said she found herself in deeper debt as the arrears were so high. She needs help to exit debt counselling.
WHAT I DID
I explained how debt counselling worked.
SOLUTION
Once you undergo debt counselling, you can’t take on more debt. You can only exit once all your debt has been paid off.
Debt counselling implies that monthly instalments are reduced, which means it would take longer to pay off the debt.
It’s best to speak to your bank before undergoing debt counselling.
The bank can offer you a consolidation loan, which doesn’t have bad effects compared to debt counselling.
