You’ve probably heard mention of the NCR … but do you know how this body protects you, especially if you are suffering under debt? The National Credit Regulator (NCR) was established as the regulator under the National Credit Act 34 of 2005. The best bit is that there are NCR debt counsellors who abide by the guidelines for a debt counselling process as prescribed and structured by the NCR. This means that there are people out there who can help you get out of debt … legally!
The Act requires the Regulator to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons, and remote, isolated or low density communities. If you fall into any of these categories, this is good news indeed.
The Implementation of NCR Debt Counselling
South Africans are faced with the challenge of over-indebtedness. This however, is characterised by the fact that many people have taken credit that they cannot afford. Non-payments of credit obligations, if not properly managed, could hamper economic growth of the country since credit providers will realise a huge number of bad debts.
To avoid the predicament of bad debts, the government introduced the National Credit Act (NCA), aimed at transforming the South African credit industry. With the introduction of the NCA, the National Credit Regulator (NCR) was established, and the inception of debt counselling and debt review processes came into effect.
The implementation of the NCA brought the introduction of debt review restructuring, naturally leading to the establishment of debt counselling. The purpose of debt counselling is to offer an alternative remedy to over-indebtedness other than the traditional methods Administration and Sequestration could offer.
Role of NCR Debt Counsellors
Consumers often turn to debt counsellors when their credit becomes unmanageable and their debt problems make it impossible to pay their financial obligations. A consumer who is experiencing debt repayment problems may seek debt restructuring assistance by applying for debt counselling service at OneDebt. The debt counsellor will explain all the details pertaining to the debt counselling process to the consumer.
Why You Should Approach OneDebt
Debt counselling assists consumers who are experiencing debt related problems by offering:
• budget advice,
• restructuring their payments,
• negotiating with credit providers on their behalf,
• monitoring their payments while providing aftercare services.
It is an educational programme that aims to create awareness about credit-related services to consumers who borrow money and make use of credit facilities. It also provides a consistent system of debt restructuring, enforcement and judgement, which places priority on the eventual satisfaction of the consumer’s obligations under the credit agreements. The debt counsellors at OneDebt adhere to the prescribed guidelines and stick to the stipulated maximum duration (60 months) for the debt counselling process.
In short, in the quest to assist the consumer, OneDebt creates debt restructuring agreement which is recommended by the NCR and acceptable to all credit providers.