It was recently reported that as many as half of South Africans with credit accounts find themselves in arrears. If you are struggling to meet your monthly obligations, perhaps you should consider debt counselling. Debt counselling is also known as debt review. It is a process designed to help over-indebted South Africans regain control of their finances. Over-indebted is a legal term which means you owe more than you can pay at the end of the month. Debt counselling is completed hand in hand with debt review. The process is done by restructuring their debt according to a legally approved plan.
How does it work?
It’s quite a basic procedure. Choose and contact a debt review company for debt counselling. You will need to provide your counsellor with details of your income, monthly budget and debt commitments. In order to qualify for debt counselling, you need to be found over-indebted. This means that your total debt will be assessed to determine if it is actually serious enough for you to need debt counselling. If it is found that you do need assistance with your debt, you’ll be given a new budget designed around a new repayment plan. Once you have agreed to this, your application will be accepted. Your creditors will be contacted to negotiate a repayment plan on your behalf. As debt review is a legal process, your contract for the new repayment plan is legally binding. This means that you are protected from potential increases in monthly instalments and commits you to meeting the new repayment plan. From your very next payday, you will begin making payments according to your new repayment plan. Only one payment is made every month to the debt review company, and they will then pay your creditors. When you have repaid all your debt, you are entitled to request a Clearance Certificate.
Can I apply for debt counselling?
Debt counselling is available for anyone from any income group and who owes any amount of debt. A debt counsellor will assess your situation and see if you meet the requirements. Contact One Debt today to apply for debt counselling.