If we told you that more than 10 million South Africans are burdened by unmanageable debt, would you believe us? That would be 40% of the current credit-active population. Unfortunately, it’s true. Being in debt is one of the most crippling and stressful experiences a person can go through. Fortunately, debt counselling was created exactly for this reason, in the hopes of curtailing the rising number of South Africans getting into debt.
The government introduced this process to address this issue and help over-indebted South Africans gain financial freedom in their lives.
What Does Debt Counselling Mean?
The National Credit Act has provided this process to tackle this problem of debt and hopefully relieve some of the pressure that it puts on everyday citizens in our country.
The debt counselling process is intended to help over-indebted people who are struggling with debt by providing budgeting advice, negotiating with credit providers on your behalf for reduced monthly payments, as well as restructuring your debts.
What Does it Mean to Undergo Debt Counselling?
Simply put, this means that if you’re over-indebted, a debt counsellor negotiates with your credit providers on your behalf to get lower interest rates and reduced monthly instalments. This ultimately makes your debt more manageable.
How the Debt Counselling Process Works with National Debt Counsellors
If you’re struggling to make your monthly debt repayments, you can apply for debt counselling with a registered debt counselling company like National Debt Counsellors.
The process of debt counselling is much simpler than you might expect. It is summarised in a few easy steps:
Step 1: Request a Free Consultation from National Debt Counsellors
One of our professional consultants at National Debt Counsellors contacts you and takes you through a free, no-obligation financial assessment to determine whether you’re over-indebted. Don’t worry, this process is completely confidential!
Step 2: We Notify Your Creditors & Negotiate a New Payment Plan for You
If you are indeed over-indebted, we then notify your creditors that you’ve applied to go under debt review. From here, you and your assets are immediately protected under the National Credit Act. We also negotiate your loan agreements with your credit providers and restructure your repayments to an amount that’s affordable for you. This means you’ll no longer struggle to make payments each month!
Step 3: Pay a Single, Affordable Monthly Instalment
Once we’ve handled the above steps for you, you begin paying one easy monthly instalment via an accredited PDA (Payment Distribution Agency), which distributes the funds to your credit providers.
Step 4: We Make the Approved Plan an Order of the Court
Our panel of Attorneys apply to the Magistrates Court on your behalf to make your restructured repayment plan an official order of the court and ensure you remain protected during the process.
Step 5: Your Debt is Paid Off and Your Credit Record is Clear!
Slowly but surely, you’ll pay off your debt. Hooray! Once it’s repaid, we issue you a clearance certificate and notify the credit bureaus to clear your credit record. You are now able to live in financial freedom!
Are There Any Disadvantages of Debt Counselling?
While debt counselling is an obvious necessity if you’re in serious financial trouble, it’s important to be aware of the following:
- You are not allowed to apply for additional credit or loans while undergoing debt counselling.
- Your debt review status reflects on your credit record until the completion of the process, or when all your debts are paid in full.
- The payment period of your debt is extended to lower your monthly instalments.
The Advantages of Debt Counselling with National Debt Counsellors
On the other side, here are some of the main advantages of undergoing debt counselling with us:
No More High Amounts
Your monthly repayments are reduced to an amount you can afford, which helps you slowly but surely step out of debt and into financial freedom.
We Cover You (and your goods)
We provide immediate protection to you and your assets, including your house and car.
We’re the Ultimate Middleman
We negotiate with your credit providers directly, so you don’t receive any more harassing phone calls.
More Peace, Less Stress
We negotiate lower interest rates on your behalf, and we extend your repayment terms. This means you get a bit more breathing room as you begin moving towards more financial stability.
We’re Comprehensive from Start to Finish
Once you’ve cleared your debt, we apply to clear your credit report. So, all you must do throughout the process is make your payments. We do everything else on your behalf!
The ultimate reason to undergo debt counselling is simply to get on a better financial wicket overall. To live debt-free is the goal, and with debt counselling it becomes possible.
Why You Should Work with Us
We’re a team of leading debt counsellors who believe that debt doesn’t mean disaster. We assist everyday South Africans, like you, who find themselves struggling to meet their monthly financial obligations. Our team is registered with the National Credit Regulator and offers you a free, no-obligation assessment of your financial situation.
Our reputation for providing exceptional service is only enhanced by the great relationships we’ve cultivated with all the major credit providers in South Africa. This gives us confidence to negotiate the best payment plan to suit your financial needs and ensures that we protect you and your assets.
