Debt Counselling Explained

"The main objective of debt counselling is to develop a repayment plan that is affordable for the consumer and acceptable to the credit provider."

Why use Debt Counselling?

Debt Counselling is a professional service provided by accredited debt counsellors for over-indebted consumers. The provision of the service is regulated by the National Credit Regulator and in terms of the National Credit Act. The National Credit Act provides over-indebted consumers with greater protection against credit providers threatening to take legal action and repossessing consumer assets. Debt Counselling is a highly effective, closely managed solution for people with debt problems. If you are struggling to make your monthly debt repayments and are being hounded by the creditors or if you are struggling to make ends meet you are definitely a candidate for Debt Counselling. Take control of your finances and get protection in terms of the National Credit Act.

What is Debt Counselling?

Debt Counselling is NOT personal administration or bankruptcy. It is a formal debt rehabilitation programme specifically introduced by the National Credit Act to prevent individuals from being placed into personal administration and having to deal with the long term effects. Like Debt Management, the process allows consumers to enter into a debt repayment plan with their creditors and emerge debt free after a period of time.

How do I apply for Counselling?

For consumers to be eligible for Debt Review they require a registered Debt Counsellor to formally review their finances and declare that they are over-indebted. The legal determination of over-indebted as per the National Credit Act is "if taking all financial circumstances into consideration a client is deemed to be unable to repay their debts". The consumer must also be employed and earning an income. See the Debt Review process…