Debt Restructuring

Understanding the Debt Restructuring Process

Are you facing severe financial trouble? Struggling with sleepless nights consumed with the overwhelming anxiety of multiple credit cards, personal loans, a car loan, a home loan, and steep medical bills?  Do you feel like you are drowning in debt with nowhere to turn? Getting into debt is easy; it is getting out of debt that is hard! If your expenses are greater than your earnings, if you have pushed your credit cards to their maximum limit but still you have a lot of payments to make each month, or if you have fallen behind on your retail monthly payments then you are a perfect candidate for debt restructuring.

Over-indebtedness is a serious issue facing millions of South African consumers. Firstly, being over-indebted is nothing to be embarrassed about and what’s important to remember is that you are not alone. There are over 16 million South Africans who are struggling to repay their debts with over 6.5 million South Africans of that figure who are currently blacklisted, and these figures are only increasing.

So why are so many consumers falling behind on their debt? Well, there are numerous reasons. We live in a consumer driven society with an unpredictable economy, where we are tempted with reckless lending by creditors every day. No one dances into debt freely, whether you can’t pay your debt for a perfectly valid reason such as an unforeseen illness or medical expenses, job loss or a retrenchment, a death in the family, an expensive divorce to overspending on your credit cards, it doesn’t matter, either way all consumers are obligated by law to honour their debt, even if they don’t have the money.

As a result of this, in 2005 the South African Government took extreme long overdue action and the NCA (National Credit Act) was implemented and became effective on the 1st June 2007 with the intention to help and encourage consumers to bounce back from debt though debt restructuring.

How Does Debt Restructuring Work?

How debt restructuring works is simple, the process is convenient, legal, voluntary and completely successful. It is the practice whereby a debt counsellor will carefully evaluate and assess your current financial situation. The purpose of debt restructuring is to make funds available to pay back your debts while at the same time still allowing you to have enough income to cover all your basic living expenses such as bond, food, rent, school fees and petrol.

One of the key negotiation aims of your appointed debt counsellor is to reduce the minimum amount payable by extending your repayment term. The negotiation will also aim to reduce the interest owed on the debt which will reduce the total end figure making it more manageable for you to pay off your debts. Through debt restructuring, we can reduce your monthly payments by up to 60%!

There is no doubt that debt restructuring has been a saving grace to all over-indebted South African consumers. It offers consumers an incredible opportunity to bounce back from their debt without taking out any additional loans, using their own afforded income to pay one reduced repayment each month until the debt has been covered. When under the debt restructuring process you are protected by the National Credit Act and creditors cannot take further legal action against you, they cannot contact you, hassle you or place you under administration. It is a stress-free ‘financial rescue’ that at the end of the day will cost you far less than that of foreclosure, administration, judgement and sequestration.

If you have identified that you need debt assistance, enrolling in a debt restructuring program with Maxlaw Credit Legal is an excellent choice for you. Our debt counsellors will provide you with a golden opportunity to regain control over your finances and to look to the future with a better understanding of maintaining your credit. Contact us today to chat to us about our debt restructuring rates and end 2014 debt FREE!

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Blacklisted – We Can Help You

Blacklisted? We Can Help You!

You have just applied for credit for a new car and you were rejected…now what do you do? You may also be wondering how this even happened in the first place? Well, if you have ever borrowed money before and never paid it back in time, perhaps even missed a few payments on your Edgars account, or even if you forgot to pay for a long forgotten service then you are probably blacklisted.

Firstly, it may come as a huge surprise but you are certainly not alone! Did you know that there are over 19 million “credit-active” consumers in South Africa who owe about R1-trillion in debt? According to the National Credit Regulator there are over 10 million South Africans who are currently struggling to pay their loans, credit cards and retail cards. Of that 10 million, over 6, 5 million people are currently blacklisted at credit bureaus and as interest rates, food, electricity, school fees and fuel prices increase, more and more South Africans are sinking at a rapid pace.

It is no secret that the world economy has hit hard times. Life is tough and if you are struggling to pay your debts now, it is not going to get any better or go away.

Understanding the Term Blacklisted

To be blacklisted means that you officially have a bad credit record and this means that you are currently unable to qualify for further credit due to your ‘negative listing”. Your creditor (Edgars, Woolworths, a financial institution or anyone to whom you owe money) would have handed your debt over for collection to a credit bureau. Unfortunately, once you have been blacklisted you will have a bad credit record for anything from 2 – 10 years, depending on the type of listing that you have against you. This means you WILL NOT be able to open up an account, loan money or even open up a bank account for the next 2 to 10 years. Now before you go into panic mode and get consumed by overwhelming anxiety, we at Maxlaw are here to tell you that it is not the end of the world because we can help you.

How Can We Help You

Yes, being blacklisted can be a disheartening realisation and one that many people only realise until it’s too late. But rather than dwell in the past, the most productive thing you can do is to know where you stand in the present, so you can take the necessary steps towards immediate blacklist removal.

If there is one thing that we at Maxlaw are specialists in, it’s fighting for your financial freedom. We restore, repair and improve credit records, and we can help you with yours.  At Maxlaw, we have been helping blacklisted clients in your very position since 2006 and currently have over 11 000 blacklisted clients on our books. We use our understanding of the credit bureaus, creditors, the court system, and through our negotiating skills and legal knowledge, we can help you with your blacklisting removal immediately.

Addressing your credit reports is the first step to blacklist removal. There are 3 credit bureaus that keep your credit history – TransUnion, Experian and XDS and to accurately assist you, we need to know what each of these bureaus is saying about you. Once we have ascertained with whom you are blacklisted and the exact amount to be paid, we will negotiate with your creditors regarding payments of the debt.

There is only one way to have a blacklisting removed and that is to simply pay the debt back. Only once the debt has been paid in full, we will apply to the court on your behalf to rescind any judgments, Notices and Defaults against your name. We will warrant that the credit bureau (ITC) process your blacklist removals and this will allow you to qualify for credit once again. In other words, you will no longer be blacklisted anymore! Why not set yourself free from debt today and contact Maxlaw – we can help you!

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Maxlaw – Why Choose Us

Maxlaw – Why Choose Us?

Are your finances spiralling out of control? Do you find that before the month is even over you are already using your overdraft facility? Have you exhausted all avenues and finally reached the limit on your credit cards? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car? Do you feel like you are on the verge of a financial breakdown?

Firstly, don’t panic! There are over 19 million active consumers in South African who are struggling to pay their debts, so you are NOT alone! Neither should you feel embarrassed or ashamed as debt is not a crime. Every individual faces a financial crisis at some point in their lives and unfortunately that is just part of life. The best thing you can do right now is to choose the credit clear services from Maxlaw.

There are many financial services in South Africa all promising better rates and efficient professional services, so what makes us at Maxlaw so special and why choose us? Take a look at what we can do for you:

  • B-Legal Services – our B-Legal services at Maxlaw specialise in repairing, improving and clearing credit records. We are a legal team that understands the court system, credit laws, and the power of negotiation and we will apply to the court on your behalf to rescind any judgments, notices, blacklisting or garnishees by negotiating with your creditors.  Choose us if you want to restore you financial reputation and we will put you on the path to a better credit rating and a clear credit record, successfully and efficiently so you can purchase on credit once again. If anyone can help you to become credit clear, we can!
  • Credit Legal Services – our Credit Legal services at Maxlaw enable over-indebted consumers to bounce back from their bad debt. Choose us if you would like your monthly payments reduced by up to 60%. We will negotiate with all your creditors to reduce the minimum amount payable by extending the repayment term and reducing the interest owed on the debt. Our Credit Legal services range from debt review assessment, debt review cancellation, debt review negotiation, debt restructuring and more.
  • Maxlaw Credit Legal – in the event that you or your family have legal problems and may require an attorney, we at Maxlaw can supply you with professional, affordable legal representation. We can also offer you the correct legal advice so you can enforce and defend your rights through strong and professional representation.

At Maxlaw, we offer a wide range of credit clear services to more than 4 million credit active consumers throughout South Africa. We are one of a few of legal entities that can legally assist those who are listed with Judgements, Admin Orders, Garnishee Orders, Defaults and those under Debt Review, as well as those require legal representation. We will fight for your financial freedom when you can’t! Choose to work with the most qualified, skilled and professional credit clear specialists in South Africa. Choose to work with Maxlaw.

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Clear Your Credit

Clear Your Credit Today!

Just found out you have bad credit? Looking to clear your credit urgently? Wondering how, why and who has handed you over? Most people only find out that they have bad credit only once they have been declined and by this time it is too late. If you are desperate to clear your credit and are at a loss at how to move forward then there is only one thing for you to do right now and that is to check your credit report.

What is Your Credit Report?

Do you even know what the credit bureaus are saying about you? Every credit active consumer in South Africa has a credit report. Think of it as a type of Curriculum Vitae when applying for a job, only it will be the banks and creditors who look at it. Your entire credit history is recorded on your credit report. It tells the lender what type of listings you have against your name and who you owe money to. As you can see your credit report speaks volumes about you, it is a reflection of the type of person you are and it tells the lender whether you are reliable or not.

So now that you know who you owe money too and what type of listing you have against your name, how do you clear your credit? The only way to clear your credit is to pay your debt back in full, but even this is not enough to clear your name, depending on your listings, you will need to apply to the court to have the listing rescinded after the debt has been paid.

  • Administration Orders – administration orders will stay on your credit record for up to 10 years. Once you have paid back the debt in full, you will need to apply to the magistrate court where the administration order was originally obtained to have the listing rescinded by a magistrate. The magistrate will give you a court order which you will then need to submit to the credit bureau for the removal of the administration order.
  • Blacklisting – blacklisted debt will stay on your credit record for 2 to 5 years. Once you have paid the debt back in full to the creditor, you must obtain a letter in writing from the creditor that stipulates they will get the listing removed. Once received you will then need to contact the credit bureau to dispute it and have it removed.
  • Judgments – a judgement will stay on your credit report for up to 5 years even after you have paid the debt back in full. Like administration orders, the only way to clear a judgement is to obtain a court order from the court where the judgment was obtained. You will need to obtain a consent letter from the creditor or their attorney before applying to the magistrate to rescind the judgment.

As you have probably realised, it is very difficult to clear your credit, that’s why it is important to take action as soon as possible. The best way forward is to seek the assistance of a legal representative such as Maxlaw B-Legal Division. We will put you on the path to a better credit rating and a clear credit record in no time. Don’t delay; call us now for immediate assistance.

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Recover from Holiday Debt

Advice on How to Recover From Holiday Debt

Yikes! You went a little overboard during the holiday season and you are now facing a string of credit accounts that demand payment NOW! We know it’s hard to resist a good bargain. Sure, it was Christmas but in the end the debt must still be paid. Here is some useful advice to help you get back on track and recover from holiday debt quickly and efficiently without ending up on the blacklist.

Don’t Ignore Your Debt

It might seem like the easiest way to deal with holiday debt is to pretend like it doesn’t exist. The truth is, it does exist and ignoring your debt will only make it worse. Consider this: each month you miss a payment, you’ll get charged more interest. Not only that, late payments will be reported to the credit bureaus, leading you to becoming blacklisted.

Assess the Damage

How much do you owe?  R1000.00, R5,000.00 or maybe R10,000.00?  The first thing you need to do is gather all your receipts or call your credit providers to find out exactly how much you owe. Once you know the total balance you’ll be able to make a plan to recover from holiday debt, as quickly as possible. And how do you do that?  Just as we have to do with the extra 5 or 10 kilograms we may have gained from overeating during the holiday season… by cutting back!

Make Temporary Cutbacks

Make the cutbacks over the next few weeks or months, or however long it may take for you to catch up.  Unless you went totally crazy over the holidays, you should be able to pay off and recover from your holiday debt pretty quickly. Areas to cut back to help you recover from holiday debt include dining out, avoiding pizza deliveries and extravagant foods at the grocery store, snack and soda vending machines, new clothes, weekends away, car washes, gym fees  (walking is free!) and DVD rentals.

Create a Budget

Budgeting seems easy enough, but in practice it can be one of the hardest disciplines to follow. Budgeting is truly a lot like dieting; it takes discipline, determination and commitment (luckily, budgeting is often a lot easier!) One way to make sure you stick to your budget is to identify the areas where you have overspent and make adjustments in those areas. Given that, tackle your debt head on. Take a look at credit card bills, and focus on the cards that have the highest interest rates; budget to pay the debt on these cards first.

Hide Your Credit Cards

The best thing to do is to avoid using your credit cards. Period!  Hide them, freeze them, get rid of them or leave them at home, and instead purchase items with cash or a debit card to easily track what you spend without incurring even more debt. Also, don’t sign up for an overdraft facility on debit cards, which allows for overdrawing on an account as this will result in higher fees, hence more debt.

Track Your Progress

One of the biggest motivators of success is success! Seeing your progress will definitely encourage you to keep paying down your debt. Create milestones for paying off your debt. For example, if you have R4, 000 to pay off, give yourself a big pat on the back each time you pay off R1, 000. Knowing that you’re making progress will help keep you optimistic and encouraged.

It’s not easy to recover from holiday debt. But if you stick to your plan and pay your holiday debt off as efficiently as possible you will recover from holiday debt quickly. Establishing better money habits takes organization and discipline so that you can make better sound financial choices in 2014 and beyond. It may not sound very exciting right now; in fact, it might even be a little depressing.  But we promise you it will be even more depressing when you are blacklisted. It will all be worth it once you have paid all your debts off!

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