How Debt Counselling Can Help You

First introduced by the National Credit Act in 2007, debt review is an opportunity for
guidance and assistance for over-indebted consumers. Debt review has assisted thousands
of lives for the better, where debt stressed households have been saved from financial ruin.
Debt counselling or debt review as it is also known, can assist you by providing protection
against your credit providers taking legal action and by providing more affordable debt
How does it work?
If you are over-indebted and cannot afford your monthly repayments, a viable option is to
visit a debt counsellor and undergo debt review. Your debt counsellor will assess the full
extent of your debt situation. A debt remedy, carefully planned, will be provided. It will
ensure that you have an acceptable standard of living while repaying your debts according
to your affordability. The debt counsellor will negotiate a restructured payment plan and
obtain a court order confirming the new repayment plan. He or she will ensure that you can
afford your repayments again. This is done by negotiating with your creditors to have your
instalments and interest rates reduced. This means that your credit providers will be kept
happy, because they will still receive payments from you, albeit lower ones. You will
continue to make payments, over an extended period of time, and so will eventually pay
back everything you owe. Once accepted under debt counselling you will pay one monthly
instalment which is then distributed to your credit providers.
Pros and cons
The main benefit of debt review is that it can protect your assets from being repossessed by
the credit provider. On the flip side, it means that you cannot apply for any credit while
under debt review. It ensures that the pattern of applying for credit is halted. The only way
to exit the review is to settle all outstanding debts, except for those related to car and house
financing. Debt counselling is an opportunity for you to regain control of your finances. It is
a great process for anyone with an income and struggling to meet their monthly obligations.
Contact One Debt today for more information about how debt counselling can help you.