Debt Counselling

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Counselling is always a necessary and recommended step to take in moments of life when an individual or group can't emotionally or physically cope with a particular development or burden. Debt just like many other developments can be a huge burden to carry for many. Debt counselling has therefore become a recommended route to take for those over burdened by debt.

A debt counsellor is someone who is registered with the National Credit Regulator. This is someone who assists consumers who are experiencing debt related problems and are having difficulty making their current monthly payment by providing them with budget advice support and mediation with credit providers.

Since mid-2007, debt counselling services became available to consumers, who are unable to honour in a timely manner, all credit agreements that they have entered into. There are a number of advantages that a debt counselling process offers.

Some of these advantages include the fact that a registered debt counsellor corresponds with and is likely to get a positive response from the consumer's creditors when it comes to negotiating repayments as opposed to a debtor approaching his creditors. Once a debtor has made an application for debt review, credit providers cannot attach any assets or take further legal action until a decision is finalised. Repayment of consumer's debt obligations is through a payment distribution agency which is an independent party. The Debt Counsellor also assists a client in managing living expenses through a formal budget. A certain amount of money is set aside for necessities such as food, school fees, transport costs etc. The remainder is used to pay the consumer's debts.

While this service is not offered free of charge, it goes a long way in providing relief to those who are over-indebted.