Debt mitigation- remedies to debt problems
On this page
General
If you are in serious financial difficulties, you can get assistance in finding a comprehensive solution to your debt problems. In debt mitigation, all individual debts are negotiated.
The aim of debt mitigation is to establish a balanced budget.
Debt mitigation solves the applicant's potential financial problems without having to seek a solution such as a bankruptcy.
Debt mitigation is free.
For individuals in serious financial difficulties
Debt mitigation is an option for individuals who:
have many financial obligations, for example, multi-loan payments
do not expect to be able to pay its debts, for example because the amounts of instalments (the burden of payment) are too high
If you are unsure whether debt mitigation is suitable for you, you can contact the Debtors' Ombudsman (UMS) at 512-6600
Advantages
A person who seeks debt mitigation shows an effort to negotiate and fulfill their commitments.
If the induvidual has the ability to pay, the person pays a monthly amount to a bank during the debt mitigation period. The bank then mediates payments.
It is possible to assume that the applicant will keep assets such as a car and real estate.
Claims are no longer in default.
Amendment to the contract may be requested if circumstances change during the period of the contract.
How does debt mitigation work?
You apply and UMS will assess whether you meet the requirements.
If an application is accepted, UMS will facilitate the conclusion of a contract with the debtor.
Onwards: application process
Service provider
The Debtors' Ombudsman