Debtors fall prey to credit rescuers

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It is important to verify the credentials of service providers and the legitimacy of the services offered in the credit management industry. When consumers are taken for a ride by these ‘credit rescuers,' they end up paying administrative fees for no-service returns, money that they can ill afford.

“Being in debt is one thing, but being informed and knowing where to go next is the best possible advice that we can offer,” says Roy Henderson, founder of Debt Help Financial Services (DHFS).

“The company was founded on two fundamental philosophies; transparency and legitimacy. Its success lies in how many people stop using our services and become financially independent and not in charging fees for services that the consumer neither needs nor can afford.”

Leading debt and financial management companies, including DHFS, have introduced free Financial Wellness workshops for the public. At these workshops, people are shown how to compile a monthly budget, how to follow it and how to practice financial self-discipline. This goes a long way in helping consumers to understand their finances and to avoid falling into debt traps. At the same time, they have access to financial experts, specialising in debt management, who can assist them going forward.

Henderson's advice to consumers in debt would be to ensure that the company they are dealing with is transparent, legitimate and an established company with a national footprint. It should be fully National Credit Act (NCA) compliant. It must follow legal and legitimate steps when providing assistance with debt management, which means helping consumers with immediately applicable repayments that are more manageable. Its final goal should be to help debtors to stop consulting with it.

Visit www.dhfs.co.za for more details.