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Unfortunately there are those instances when it has become too late to seek out financial advice for financial problems. This does not mean that consumers should give up the fight and allow financial problems to ruin their lives – always seek out advice no matter how far financial problems have progressed.
However financial problems solutions can be hindered by the following factors:
- If a consumer no longer has an income, they may not make use of financial problem remedies such as debt counselling or debt consolidation. This is because in order to restructure debts and come up with a new payment plan, a debt counsellor must have an income to work with. The consumer can also not provide any guarantee that they will be able to pay their debts, and thus negotiations with creditors will fall flat.
- Secondly if a consumer already has court order, judgments and notices of attachment on their assets – they will not qualify for these remedies anymore. This is because these remedies are designed to prevent these actions, not to put an end to a legal process that has already begun.
- The onus is on the consumer to retain employment and make their debt payments whilst undergoing debt review for financial problems. The same applies to debt consolidation. This means that although a small grace period may be granted for consumers who are suddenly unemployed, the consumer should immediately seek out alternative sources of income.
- Assets that have been seized can unfortunately not be recovered; however consumers can pay their debts and clear their credit scores. This will once again enable them to rebuild their financial portfolios.
Although it is not wise for consumers to allow financial problems to escalate to this level, it is best that they be aware of where the line is drawn when it comes to help for financial problems.
Article written by: Andrea van Tonder 07-2013