Debt Counselling Explained

Many people experience months where their budgets feel strained, have cash flow problems and are concerned about money. The legal process of Debt Counselling is afforded to over-indebted consumers, as a way to help them get a grip on their monthly debt repayments and finances. The National Credit Act (NCA) of South Africa regulates this process, and ensures the best interest of consumers who choose to undergo Debt Counselling.

It is important to note that only over-indebted clients who receive a monthly salary can be considered for Debt Counselling. Some indicators for being over-indebted include having judgements granted against you, making use of credit cards/borrowing money to pay back debt, being constantly harassed by creditors for late or missed payments, and being unable to manage your financial obligations. If you can’t afford your children’s school fees or constantly worry about paying the rent or putting food on the table, take action now. Debt can quickly spiral out of control, but it does not have to be your reality.

Clients who are over-indebted can feel that they are in over their heads, and the consequences can be dire. Asset repossession and similar legal actions are a real possibility when it comes to not honouring your contracts with creditors and banks. One major benefit of Debt Counselling is that you are legally protected from any legal actions of this sort, while you undergo the process. Don’t wait for your car to be repossessed or your home to be taken from you – Debt Counselling gives you a new start, where you don’t have to look over your shoulders.

The steps are easy – you can begin by applying for Debt Counselling through our online Debt Application Process. An affordability assessment will determine if you are over-indebted, and then a qualified Debt Counsellor will step in to negotiate reduced payments and interest rates with the banks and creditors you owe money too. This process allows us to present you with one all-inclusive monthly debt repayment that covers everything you owe. This new payment is much more manageable, as we consider your income and expenses beforehand.

Essentially, Debt Counselling restructures your financial commitments in a way that works for you, your family and your budget. The Debt Review Process can take anywhere between 3 to 5 years to complete, largely depending on the amount of debt you’re in. Before you can be placed under Debt Counselling, a court order must be granted, which legally protects you from your creditors – we handle all the court applications for you, and will liaise with your creditors on your behalf. You will still be paying back all that you owe, only now you can still afford to live a comfortable life.

At Debtco Group, we work to provide struggling consumers with a reliable, transparent Debt Counselling service. We’re available to guide you, advise you and also celebrate with you, once your last debts have been repaid in full and you are issued a Debt Clearance Certificate.