Welcome to the Insight Hub!
Today, we're tackling a common conundrum: the mystery
behind declined loan applications.
Imagine a glass brimming with water – that's your credit limit.
To make room for more, we need to pour some out.
Join us as we explain how to manage your 'financial glass'
to ensure there's always space for good debt, which in turn,
leads to a strong credit profile.
Ready to take control? Let's dive in.
Want to know WHY
your Loan applications
are DECLINED?
Because you have reached your CREDIT LIMIT.
Picture this, you have a glass full of water.
This glass has reached its
limit - it can`t take anymore
water. The same is happening
with your SALARY - it can`t
pay for NEW Loans anymore
OUR SOLUTION
The more water you throw
out, the more space there
are for more water in the
glass. The more payment
obligations we remove, the
more space we create for
payment of NEW Loans or
Credit.
WE TURN DECLINES INTO APPROVALS
We assist Consumers to overcome the obstacles standing in their way to qualify for LOANS.
When do you have TOO MUCH DEBT?
When you can NOT afford to pay your DEBT Instalments + your Living Expenses such as Rental; School Fees; Travelling; Groceries; etc.
When you skip payments to certain Creditors - the "pay one, skip one" concept.
When you have a HIGH or VERY HIGH RISK Credit Profile with the Credit Bureau`s
When you no longer qualify for NEW Loans
What are the Options?
One thing is certain: to STOP making payments to your Creditors is NOT an Option.
Following the "pay one, skip one" approach may bring Cash Flow Relief in the Short Term, but this is also NOT an Option.
If you have too much Debt for the reasons set out above, you are regarded to be over-indebted in terms of the NCA (National Credit Act).
You will therefore immediately become a Target for DEBT REVIEW Companies.
Unfortunately, many of these Companies focus firstly on turnover and do not follow an holistic approach with specific emphasis on the special circumstances of a particular Consumer.
It is furthermore a fact that Debt Counsellors in general do not have the experience of Attorneys who have been practicing in the Debt market for many years who have special knowledge of ALTERNATIVE OPTIONS that might offer better solutions considering the special and unique circumstances of a particular Client.
An example of such an Alternative option is Voluntary Sequestration. In many instances this option offers a much better Solution than Debt Review or any other Debt Relief option. We have had many Clients who had been able to start with a clean slate after 2½ to 3 years, after they have qualified for Rehabilitation within the framework of the Insolvency Act. Those very same Consumers would still have been under Debt Review had they not learnt of an alternative option.
There are also other options which Consumers are not exposed to often, namely Debt Management OR Consolidation Loans OR Score Fix. We would like to introduce you to our SCORE FIX PROGRAM with specific focus on Rebuilding a Credit Profile.
WHAT YOU NEED TO KNOW
The purpose of this document is to provide you with information to enable you to make an informed decision which option will work best for you, taking in consideration:
your specific circumstances such as your Household Income;
prospects of additional Income;
equity in immovable property;
your marriage dispensation;
employment conditions that may disqualify you from promotion or a new opportunity if you were under Debt Review or Sequestration;
Balloon payments on a Vehicle;
the position of children within the next 5 years, i.e.. entering high school or finishing school;
special medical needs;
the opportunity for a "piggy bag"; etc.
This is what will happen to you if you choose DEBT REIVEW
You will find yourself in the “Debt Review trap” for 10 years or longer.
The National Credit Regulator Guidelines and High Court decisions dictate that you CANNOT EXIT or cancel Debt Review.
You can cancel from a specific Debt Counsellor, but you remain under Debt Review.
Thus the principle applies: once in, you are trapped. The only way to get out of Debt Review is by paying off ALL your debt or through a court order.
You will be listed under the WARNING section in your ITC Report during the time that you are under Debt Review.
During this time you will NOT qualify for a loan with a bank and/or other lenders or financial institutions.
Rental agencies will also look the other way if you apply for rental accommodation.
A court order will bind you to a fixed monthly payment which cannot be changed without the consent of the creditors.
No payment holidays allowed.
Debt review does not include judgment debt or arrears on school fees and outstanding medical accounts.
If you cannot afford to pay the minimum instalments demanded by your Debt Review creditors, they may withdraw from the process and pursue legal action, which means you may still be at risk of the bank repossessing your home or car.
You will most likely not have access to legal advice as part of the service, such as the FREE Will and Estate Planning service of our UNIQUE Score Fix Program.
Our SCORE FIX program is the total opposite:
You will NOT be listed under the WARNING section of your ITC Report.
You will NOT be bound by a court order requiring you to make a fixed payment every month.
You will only pay what you can afford and we can even arrange a payment holiday if you have some unexpected expenses.
We include Judgment Debt or Arrear School Fees and provide you the opportunity to AFFORD your Car and Home Loan Instalment.
We therefore also protect your most valuable assets like your car and house from being repossessed.
Our legal team will provide assistance against legal action by lenders.
You can EXIT the Score Fix process at ANY time without a penalty or cancelation fee if you feel it does not work for you.
Being family orientated, we know that Consumers need access to LOANS from time to time.
In fact our Clients qualify for "Booster Loans" immediately - GUARANTEED. T`s & C`s apply. This will never be possible with Debt Review.
Score Fix gets results faster. We have clients who were able to buy a Car or House within a year or less. If you were under Debt Review you would have to wait 8 or 10 years or even longer before you could buy a Car or House.
CONSOLIDATION LOANS
CONSOLIDATION LOANS ARE NOT THE IDEAL SOLUTION
Consolidation Loans may seem attractive to over-indebted Consumers as it brings immediate Debt Relief.
However, it may not bring the Cash Flow Relief that a Consumer was hoping for, which will be the case if Judgment Debt; Arrear School Fees; etc. are excluded from the Consolidated Loan Amount.
In order to keep the Instalment as low as possible, the Consolidation Loan Instalment must be paid over a very long period.
The problem is that Consumers are allowed to enter into new Loan Agreements during this time, meaning that they soon find themselves in an over-indebted position again.
Consumers may also learn that they still don`t qualify for a Home Loan, notwithstanding that they are paying a lower Instalment towards their Debt.
One of the reasons being that a Consolidation Loan product is described as such in Consumer Credit Reports. Accordingly, LENDERS are alerted to the fact that the Consumer did not handle his DEBT responsibly and may therefore be a RISK for a long term obligation.
WHAT IS A CONSOLIDATION LOAN?
With a CONSOLIDATION LOAN you are basically REFINANCING all your EXISTING DEBT into ONE NEW PERSONAL LOAN.
You therefore have to QUALIFY for an AMOUNT that will cover ALL your Outstanding Unsecured Debt. The HIGHER the LOAN AMOUNT the HIGHER the LENDING CRITERIA. For this reason far less Consolidation Loans are available making it a very limited market.
WHAT DOES IT COST?
It is a NEW LOAN, meaning that you will START paying NEW DEBT over a LONGER period than your OLD DEBT.
Although your INSTALMENT will be LOWER you will pay DOUBLE the amount you borrowed because of the MAXIMUM TERMS allowed for
these Loans. To use an example: The average Consolidation Loan Amount is R250 000,00 At a rate of 22% paid over the maximum term of 84 months (7 years) you will pay a TOTAL of ± R570 000,00 (less R70000 with in duplum ).
WHAT YOU SHOULD KNOW
CONSOLIDATION LOAN institutions and their Marketing Agents DON`T have the specialized knowledge & know-how to prepare your CREDIT PROFILE to qualify you for certain types of Credit lines, such as HOME LOANS.
For instance:
They don`t investigate RECKLESS LENDING or PRESCRIPTION or IN DUPLUM.
They don`t negotiate for SETTLEMENT DISCOUNTS because the bigger the CONSOLIDATION LOAN the bigger their profit.
You will have a High Credit utilization Ratio over a longer period which will have a negative impact on your CREDIT SCORE
The ARREAR HISTORY on your old Accounts will still reflect on your CREDIT PROFILE for 2 years after it were paid off.
Certain Debt can NOT be included, i.e. SARS – thus, you may qualify for a HOME LOAN but you will NOT be able to TRANSFER the property if you have outstanding SARS DEBT. They also don`t advise which DEBT is the BEST DEBT on your Credit Profile which will improve your chances of qualifying for a HOME LOAN or at least to qualify for a LOWER INTEREST rate.
CONSOLIDATION LOAN vs SCORE FIX REHABILITATION LOAN
Our SCORE FIX Program offers over-indebted Consumers an ALTERNATIVE to CONSOLIDATION LOANS and/or DEBT REVIEW.
With the SCORE FIX Program your Instalment will be LOWER than the CONSOLIDATION LOAN Instalment:
Arrear School Fees + Arrear Municipal Accounts + Arrear Medical Accounts are included;
Provision is made for payment of HOME LOAN + VEHICLE FINANCE.
The score fix program has a flexible payment plan + provides access to loans
The client is entitled to Booster loans - Guaranteed!
The score fix Rehabilitation plan gives preference to living expenses -hence the client may pay reduced instalments if his/her personal circumstances change.
The client may use credit cards and/or other accounts such as clothing accounts
The client may qualify for rehabilitation loans which is essentially a mini consolidation loan ,the proceeds which can be utilized to expedite the repair process
In addition, the LOANFIX Program takes care of the following:
REPAIR of CREDIT SCORE
INVESTIGATION of ACCOUNTS for Reckless Lending + Prescription + In Duplum
In addition to the above, the Consumer has access to our TEAM OF EXPERTS who provide expert advice at NO extra costs.
For example:
The requirements to CONSOLIDATE ALL DEBT into the equity of a HOME LOAN
The requirements to qualify for VEHICLE FINANCE or HOME LOAN
The types of DEBT which is BEST to improve CREDIT SCORE
How to expedite the REHABILITATION of a Credit Profile
Forensic audit of Accounts
LAST WILL & TESTAMENT
Despite the efforts of Attorneys and other role players in the industry, such as Financial planners, Banks, etc. there are still too many people in South Africa who don`t have a valid will when they pass on. It is not exactly clear why this is the case, especially since many law firms and other role players have been offering their professional services for FREE in recent years in an effort to encourage people to realize the importance of having a valid Will / Testament.
WHY SHOULD YOU HAVE A VALID WILL?
This is the only legal way to ensure that your Estate is wind up according to your wishes. There are mainly 2 considerations that stand out, namely:
1. protecting the interests of your beneficiaries and
2. the Administration of your Estate.
WHEN SHOULD YOU HAVE A VALID WILL?
If you have children
YOU may appoint a Guardian for your minor children in the event that both you and the mother/father of your children pass simultaneously. You may then set up a Trust and appoint a Trustee to receive assets or cash and to look after the affairs of the minor children; Without a Will the State will appoint a Guardian and all monies will be controlled by the State under the Guardian Fund.
If you have a spouse
Different rules apply to a marriage in community or OUT of community of property. If you are married IN community, you can only bequeath 50% of the Joint Estate. Normally parties married in community will choose to make a JOINT WILL to ensure that the surviving spouse inherits 100% of the Joint Estate. The same document will typically also determine what will happen with the 100% upon the passing of the surviving spouse, for instance setting up a Trust for beneficiaries. If you don`t have a Will other interested parties may inherit the Child`s share, if any. If you are married OUT of community, your Estate planner should 1st of all determine whether the ACCRUAL system applies to the marriage or not. If the marriage is subject to Accrual, if often requires the valuation of Assets to determine whether your Estate will have an Accrual liability or whether your Estate will become a receiver of value. As you can imagine, this can become a very complicated process that may require the input of experts. Without a Will, your spouse may be exposed to the challenges of relatives, creating a situation that may even become hostile, which is something everyone of us want to avoid.
If you have DEBT
Many people are under the impression that DEBT will be written off upon their passing. Reality is that your ESTATE will be liable for your DEBT. And if there is not enough Cash to settle the DEBT, your Executor may have to sell ASSETS to be able to pay your Creditors. This may leave your spouse + children without a house and a car. You may think that the Credit policies may kick in. Unfortunately this will NOT be the case when the specific Account is in Arrears. You therefore need expert advice to deal with this.
If you are DIVORCED
If you haven`t changed your Will within the first 3 Months after the Divorce, your ex spouse will inherit as if you were still married at the time of your passing. You will also have to REMOVE your ex as a nominated beneficiary on your Pension Fund and/or Life cover policy.
If you are PREGNANT / HAD A CHILD recently
If you are pregnant the common law principle of nasciturus dictates that a child that was born alive after your death and who was conceived prior to your death, is considered to have obtained rights from the moment he/she was conceived. This principle applies whether the deceased leaves a Will or not. If you had a child recently, it is time for you to UPDATE your will to include the newborn in order for him/her to inherit in accordance with your wishes.
APPOINTING AN ADMINISTRATOR
This is the person you trust and empower to make important decisions on your behalf when you no longer can. Although not a requirement by law, it is recommended that you appoint a professional person to act as the EXECUTOR/EXECUTRIX of your Estate for the simple reason that the Administration of an Estate does not merely involve the handling of the financial affairs of the Estate, it sometimes also requires specialized knowledge of other aspects. It is especially true when dealing with DEBTS of the Estate. For instance, if your Executor/Executrix does not have knowledge of the in duplum, your Estate may lose money which could otherwise have been distributed amongst the Beneficiaries. If the Will provides for a TRUST and the Executor/Executrix is also appointed as the TRUSTEE of the Trust, it is important that you are satisfied that such person has the required skills and expert knowledge to deal with different scenario`s such as Disputes.
WHAT ARE THE REQUIREMENTS FOR A VALID WILL
It is easy to get the legal requirements for a valid Will wrong. Signing in the presence of 2 Witnesses, means just that – all parties must be present at the time of signing of the Will. No shortcuts here. To be valid a Will must be in writing. The Will must be executed by the Testator/Testatrix in the presence of 2 Witnesses who are older than 14 years. It means that the Testator/Testatrix and the Witnesses must be in each other`s presence at the time of signing of the Will. Every page of the Will must be INITIALLED by the Testator/Testatrix as well as the 2 Witnesses with the execution part, normally the last page, that must be SIGNED in full by the same parties mentioned. The Witnesses may NOT be nominated as Beneficiaries in the Will.
Office:
UNIT 29B, First Floor, Nobel Park, Cnr Du Toit/Old Paarl rd, Bellville, Cape Town, 7530
021 903 7638
069 917 8064
Email: [email protected]
Site: www.loanfix.co.za