Debt review is a legal process available to South African consumers. The process was created by the National Credit Act 34 of 2005 for those who are struggling to pay off their debts. Counselling provides a debt relief option as part of the process. This aims to help individuals who are over-indebted. It provides consumers with advice and measures to restructure their debt and make repayments that are affordable to them. Let’s look at some of the benefits of debt review.
The debt review process involves working with a debt counsellor. They are registered with the National Credit Regulator (NCR). They assess your financial situation, including your income, expenses, and debts.
The debt counsellor negotiates with your creditors to assist you in managing your debt. They act on the consumer’s behalf to restructure their debts into a more manageable repayment plan. This may mean extending the repayment period or reducing the interest rates or fees. Consolidating many debts into one monthly payment is also suggested.
Reasons to Consider Debt Review
If you suffer from over-indebtedness and are seeking relief, then consider the many advantages of debt review.
- It offers protection: The first piece of relief is protection from harassment. Once the process begins, you are protected from legal action by your creditors. You cannot be blacklisted by credit bureaus and are protected from legal action such as garnishee orders, and repossession of assets or property. You may also not be evicted from your home.
- Manageable monthly payment options: Debt counsellors can negotiate more manageable monthly repayments with credit providers. You can also make a single monthly payment to a Payment Distribution Agency (PDA). The PDA distributes the funds to creditors on your behalf. This relieves you from a significant administrative burden.
- A realistic payment plan: Debt review allows the debt counsellor to ask for a new payment plan for the consumer who is struggling with debt. They also get a court order to confirm it. To be a Debt Counsellor, a person must register with the National Credit Regulator. They must have an NCRDC number to prove this.
Debt counsellors explain the benefits and disadvantages of accepting debt counselling. They also let you know what the costs involved are so that you can make an informed decision.
The Benefits of Debt Review with National Debt Counsellors
The debt counselling process has a lot of benefits, the most significant is that you are able to repay your debt in a structured and sustainable way.
Here are some of the other main reasons you should consider working with us to help clear your debt:
No More High Amounts
Your monthly repayments are reduced to an amount you can afford, which helps you step out of debt and into financial freedom.
You (and your goods) Are Covered
Immediate protection is provided to you and your assets, including your house and car.
We‘re the Ultimate Middleman
We negotiate with your credit providers directly, so you do not 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 are Comprehensive from Start to Finish
Once you have 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 Opt for Registered Debt Counsellors?
Many dishonest debt advisors in South Africa are not registered with the National Credit Regulator (NCR). These people claim to be ‘debt specialists’ but are not. They often take the money of vulnerable people who are struggling with debt and promise to get them out of debt fast. They then charge exorbitant fees for poor-quality advice and bad service making the situation worse. Using the services of a registered debt counsellor is best because you can rest assured that you are dealing with a trustworthy professional who is qualified and has the NCR’s approval.
Debt review is a legal process governed by the NCA. Registered debt counsellors must obey the NCA and its regulations. This means that they have a legal and ethical obligation to act in your best interests.
They must follow strict processes and procedures that protect consumers. They must be able to protect consumers from dishonest lenders or those who want to take advantage of the situation.
What to Look for in a Debt Counsellor
Now that we have covered what debt counselling is, it is time to go over some of the key things you need to consider when you are seeking help from a debt counsellor.
Check for Registration with the National Credit Regulator
In South Africa, debt counsellors need to be registered with the National Credit Regulator (NCR) to legally practice. This is the first and most important factor that you need to check, double-check, and triple-check when you are looking to work with debt counsellors.
By working with registered NCR debt counsellors, you can be certain that they have met the required standards of education, training, and experience. You can find the list of all registered debt counsellors here.
Look into the Reputation and Experience of the Debt Counsellor
Once you have ensured that a debt counsellor is registered with the NCR, your next step is to investigate the feedback they have received from clients and their overall reputation in the industry.
Most trustworthy debt counsellors should have a website that you can peruse and learn more about them. Look for details like their time in the industry, their success rate, and their awards or certificates.
You can also ask your friends or family members for advice on any debt counsellors they have previously worked with.
Fortunately, we at National Debt Counsellors proudly tick the boxes mentioned above.
The Road to Freedom from Debt
Becoming debt-free can be a complex process. So, it is important to have expert advice and guidance to achieve the best possible outcome. Registered debt counsellors can assist you in making informed decisions about how to manage your debt.
Avoid unregistered or unreliable debt review agents as they may make your situation worse. Instead, speak to a registered debt counsellor to stop struggling with your debt alone.
Are You Financially Distressed? Then, Turn to National Debt Counsellors
National Debt Counsellors assist thousands of South Africans every month with debt relief. Through a comprehensive debt review process, they help you attain financial freedom without debt.
Contact us today for a free, no-obligation assessment of your financial situation.
