debt-counselling
With the implementation of the National Credit Act, Instituted June 2007, Debt counselling (also known as Debt Review) is a highly effective debt repayment solution. Focused on helping over-indebted individuals to meet their commitments in a way that suits both their Credit Providers and their pocket. Apart from the fact that it reduces stress it offers protection against legal action from Credit Providers and the everlasting effects of being placed under Administration.
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It also provides individuals with a way to repay their debts while ensuring that they still have the ability to meet daily living expenses. In short, if you are struggling to meet your monthly repayments and face possible legal action, Debt counselling could offer you the solution you need. The process is intended to assist over indebted consumers struggling with debts through the budget advice, negotiation with credit providers for reduced payments and restructuring of debts. Entitle yourself to peaceful nights and a debt free life.
A court date/order must be obtained before the 60 business days has lapsed.
Debt Conselling process
Step 1:
Provide details of your income, monthly budget and debt commitments to the Debt Counselor.
You will need copies of your pay slip, ID and the latest statements of all your debt.
Step 2:
The Debt Counselor will do an initial assessment to check that you are over indebted then the debt counselor will set up a consultation with you. This could be a face to face consultation or a telephone consultation.
Step 3:
During the consultation the debt counselor will verify your budget and your existing debt commitments. A new budget will be agreed upon and the amount available for debt repayment will be determined. The fee structure will be provided as well as interim repayment plan, which is now an official application.
Step 4:
A debt counselor will now contact all your credit providers as well as the credit bureaus and advise them that you are under debt counselling. This listing will stay there until you have paid everything off, then it will be completely removed. A proposal will also be negotiated between the credit provider and a debt counselor where possible.
Step 5:
The credit providers may accept the proposals and if all of them do, then a Consent order will be obtained from a Magistrate Court. If one or more of the credit providers do not accept the proposed repayment plan, the debt counselor will have to submit a proposal to the Magistrate for a decision.
Step 6:
Debt counselor will provide you with a final repayment plan and also submitted to a Payment Distribution Agency (PDA). This is to collect a single payment from the consumer and ensure that the correct amount is paid to all credit providers on a monthly basis. This continues until the debt has been repaid.
Accredited debt counsellors to get you started with Debt Counselling
This is a plan which is assists with you with your debt management, this kind of situation is not easily accepted until you consider the debt review process.
A Free debt assessment between the consumer and debt counsellor is done, this is where a consumer gets a chance to speak openly about his/her current situation.
This may sometimes be traumatic to the consumer because of the harassment from the creditors, with letters and daily calls. Therefore, it is more important for a debt counsellor to be more calm and patient in order for the consumer to get all the attention she/he deserves.
This will involve the breaking down of all the debts and the creditors to be paid, which then assist the debt counsellor by giving a clear indication as to how much can be combined into one affordable instalment to be a repayment to the creditors.
Not even single debt should be left out during the time of assessment as this might come up during the payment process affecting or even contradicting with the court procedure and arrangement with the creditors.
Types of debts we can deal with provide none are garnishees, summons, judgements, salary deductions or been to court.