I Have Too Much Debt! What do I do?

It is another new month and you find you cannot pay your monthly bills again. Statistics
show that up to 80% of South Africans are over indebted, in other words, they cannot afford
to meet their monthly payment obligations. Both poor money management skills and the
use of credit has led to a situation in which many people find themselves to be over
indebted and unable to honour their credit agreements.

However, there is a way to help you find your way out of debt. You can visit a debt
counsellor for debt couselling. In official terms, debt couselling is a formal legal process that
declares a person to be over indebted and a restructured payment plan to be put in place
with a court order confirming this new payment plan.

The National Credit Act (NCA) applies to credit agreements with all consumers and can assist
in cases of over indebtedness. If you find that you are over indebted, speak to a registered
debt counsellor and set up an appointment.

He can assist you in the following ways:

  • He wil determine your current financial status to determine whether you are over
  • The debt counsellor will provide a debt remedy. This will include ensuring an acceptable
    standard of living while you repay your debt according to your affordability
  • You will receive an agreed upon, affordable and realistic monthly budget so that you can
    repay your debt in the shortest possible time
  • The debt cousellor will give you a repayment schedule that your creditors agree to and
    that is accepted and confirmed by the Court
  • You will need to pay 1 amount per month which will then be paid to your creditors on
    your behalf.

Once you have paid up all the outstanding debt, you will receive a clearance certificate for
your debt cousellor. When you have received this certificate, the Credit Bureau is required to
remove all the information relating to debt counselling.

The process of debt couselling is guaranteed. This means you can rest assured that you will manage to pay off all your
outstanding debt in a structured way.

For more details about debt counselling, speak to One Debt today.