There are many South Africans who are battling to meet their monthly debt obligations. When you are struggling to pay your debt, you could let your creditors hand your debt over to debt collectors – or you can let debt counsellors help you deal with your debt. Wouldn’t it be better to take responsibility for your debt and make a sensible plan to pay it off? The alternative could be both daunting and embarrassing, causing stress and worry. In 2007, the government introduced a programme called debt counselling to assist over-indebted consumers.
Consider debt counselling
This is a debt relief process that is carried out under the regulation of the National Credit Regulator (NCR). It’s aim is to help reduce your monthly debt repayments and to fix your credit score. Debt counselling should be considered when you are unable to meet your monthly payment obligations to your creditors. If you are too scared to open bills, or are skipping certain payments so that other bills can be paid, it is advisable to both consider and apply for debt counselling. Worrying about your debt can take a large physical and emotional toll. The NCA identified debt counselling as a solution to over indebtedness.
How can it help me?
As debt counselling is regulated and backed by the National Credit Act (NCA), you will receive legal protection against your creditors. This also means that your assets, like your home and motor vehicle, can be kept safe from repossession. Debt counselling is designed in a way that you will be able to meet your monthly obligations, and still be able to cover your living expenses. When you meet with a debt counsellor, he or she can negotiate with your creditors on your behalf to arrange for lower interest rates and fees on your various credit agreements, as well as extended payment terms. You will pay one monthly amount, which is then distributed to your creditors on your behalf. On completion of the process, you will be issued with a Clearance Certificate. Help is available and you can take control of your debt. Debt counselling is indeed a viable solution for consumers who are over-indebted.
For advice and guidance regarding debt counselling, speak to One Debt today.