In South Africa, the issue of debt is a growing problem for many consumers. More and more people are struggling to manage their debt. Act sooner rather than later and give yourself some breathing space. Before you become over-indebted and can no longer pay creditors, get professional advice from debt advisors. Don’t run the risk of being declared insolvent and sequestrated.

debt advisors

If you are in financial distress due to debt, a good option is to consult debt advisors (or counsellors). They can assist you with debt counselling services to help you manage your finances and offer debt relief. Debt counsellors are professionals who are registered with the National Credit Regulator (NCR) and trained to provide debt counselling services. They are also certified under the National Credit Act (NCA).

The Role of Debt Advisors

Debt advisors will assist consumers by assessing their financial situation. They will help develop a budget and negotiate with creditors on their behalf. The aim of debt counselling is to give consumers a chance to become debt-free. This happens over time. Steps taken include consolidating debts, reducing interest rates, and extending the payment terms.

If you are over-indebted and have approached debt advisors for help, they will focus on your best interests. They are trained to provide honest and transparent advice and will always maintain confidentiality. They will explain your rights and responsibilities in easy-to-understand language.

Beware of Fake ‘Debt Advisors’

Unfortunately, some individuals and companies claiming to offer debt counselling services are not registered with the National Credit Regulator (NCR). These unregulated ‘debt advisors’ often give bad advice that ends in bad outcomes for the consumer.

The biggest risk of using unregistered debt counsellors is dishonest activity. Unscrupulous operators often take advantage of vulnerable consumers. Unlike registered debt advisors, these individuals and organisations focus on making money. They promise to help consumers get out of debt. Instead, they often pocket consumers’ money while providing dishonest or bad advice. Using unregistered debt counsellors may push you deeper into debt. Worst of all, there is little recourse or way to recover your funds.

When using unregistered debt advisors means there is no statutory protection offered. This is a serious problem when the consumer is unhappy with the services provided, more so when the debt advisor engages in fraudulent or unethical behaviour. The NCR is a statutory body that regulates the credit industry in South Africa. It requires that all registered debt advisors meet certain standards and guidelines. Registered debt counsellors must obey the National Credit Act and the regulations that govern it. This means that the law protects consumers who use registered debt counsellors, especially in the event of any disputes or disagreements.

Unregistered debt counsellors have no training. They don’t have the experience needed to provide effective debt counselling services and are not qualified to give proper advice.

Looking for Registered Debt Advisors?

Registered debt councillors comply with the provisions of the NCA and the regulations that govern it as well as the Code of Conduct for Debt Counsellors. This ensures that they provide honest and effective services. Professional debt counselling services reduce financial stress and improve the quality of life of their clients.  

National Debt Counsellors offers qualified guidance to many South Africans every month. We understand debt and the situation of over-indebtedness. Our debt counsellors will provide you with the necessary tools and support to deal with your debt in the best possible manner to get you back on track to financial freedom as quickly as possible. We will not leave you worse off than you were before!

Contact us today for a free, no-obligation assessment of your financial situation.