What is debt counselling and who can apply in South Africa?
Debt counselling is a debt relief option accessible to over-indebted consumers in South Africa as stipulated in the National Credit Act. Its purpose is to aid individuals burdened with excessive debt by offering budgetary guidance, facilitating negotiations with creditors for lower payments, and reorganising their financial obligations. Debt counselling services are offered by debt counsellors registered with the National Credit Regulator (NCR).
Consumers facing challenges meeting their monthly debt commitments can seek debt counselling services. To qualify for such assistance, these individuals must possess a distributable income, which registered debt counsellors will utilise to negotiate reduced payments with their credit providers. It’s important to note that for couples married in community of property, a joint application for debt counselling is required, underscoring the collaborative approach in addressing their financial concerns.
Are you struggling with debt?
Debt counselling is an option for individuals struggling with their current debt payments but still have a regular source of income and wish to avoid the legal consequences of unpaid debt.
As a consumer, you are over-indebted if you cannot service your debts on time as agreed with credit providers:
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How can our registered debt counsellors HELP you?
It’s crucial not to wait until it’s too late, as creditors can take further actions as early as the first month a payment is missed. Upon receiving an S129 notice, which signals an overdue account, it’s essential to consult a debt counsellor promptly, as that specific account may already be excluded from negotiation, potentially jeopardising the entire debt counselling process.
There is no limit to how much debt you can include in a debt counselling program. We negotiate with home loans, vehicle financing, overdraft facilities, credit cards, personal loans, and furniture and clothing accounts.
A: “Debt Counselling has significantly developed since its introduction in June 2007 under the National Credit Act. Like most new legislation, initial uncertainties and legal challenges needed to be addressed for the Act to function effectively. The industry has now matured to the point where Debt Counselling operates as intended by the legislature.
Since the inception of Debt Counselling in 2007, we have successfully assisted thousands of individuals. It’s reassuring to observe that more and more people recognise that the system is effective. In response to your question, yes, Debt Counselling does work.”
“Avoid shopping around among debt counsellors for the lowest quote. If the quoted instalment does not effectively address your total debt, you may find yourself paying the same amount as mentioned by our offices or, in some cases, even worse off. Finding the best solution to pay off your debt is not the same as shopping for bargains and discounts.”
A: “Under the provisions of the National Credit Act, we, as Debt Counsellors, can reduce your monthly payments by extending your repayment periods and, in certain instances, negotiating lower interest rates on your existing debts.”
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