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What Exactly is Debt Counselling?

Debt Management • by Creditgenie • 19 October 2017

Debt counselling is available to South Africans who are living under a yoke of debt that they can no longer manage. So, if you’re battling to cope with your debt, and it’s having a negative impact on your family, job and mind, there is a solution. If you’re experiencing sleepless nights from stress because you can’t handle your bills, and creditors are hassling you with phone calls and threats to make payments, you could find relief in the form of debt counselling.

Consumer debt counselling was introduced by the National Credit Regulator (NCR) as a solution for many South Africans to relieve the burden of over-indebtedness. This means that if you’re over-indebted you can employ debt counselling to help manage your debt.
A Debt Counsellor can Provide the Following Services:

1. Offer you advice, help and information on budgeting, debt management and solving your everyday financial problems.

2. Negotiate with your creditors on your behalf (if you’re over-indebted) for a reduced monthly payment. In such a case, a debt-restructuring programme, called debt review, can be put into place.
How can you Benefit from Debt Counselling?

• Creditors may lower your interest rates and you could pay low or 0% interest.
• You’re protected under the NCA in that your creditors cannot take legal action against you, nor harass you with phone calls for payment.
• You don’t have to declare bankruptcy, which could seriously damage your credit score.
• You’ll be able to afford your monthly payments.
• You don’t have to deal with your creditors directly; your debt counsellor will liaise with them.
• Your debt is consolidated, so you only make one payment (including the monthly debt counselling fees).
• Your debt counsellor can negotiate better repayment terms with your creditors than you.
• Your assets cannot be repossessed.
• You’ll have a chance to repair your credit status, and you cannot be blacklisted while under debt review.
• You can withdraw from the process at any time (in this case, you will have to resume normal payments under your original credit agreements).

You don’t have to feel hopeless because of unmanageable debt. Debt counselling lets you take control of your finances without sacrificing the necessities of your daily life. You’ll have that peace of mind and confidence that you are doing something positive to get back on track.


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