Debt Counselling
Debt counseling and debt review is expected to offer people who are over-indebted a way to negotiate a more affordable repayment plan with their creditors. The process of debt counseling is provided for in the National Credit Act (NCA), , and applies to credit agreements entered into before and after that date.
If you are struggling to pay your debts, facing legal action or you are about to have your vehicle and/or property repossessed, you can approach a Help with debt, debt counselor and ask him or her to review your situation.
Alternatively, a credit provider, such as your bank or a retailer, may refer you to a Help with debt, debt counselor if you fail to meet your repayment obligations.
There are no restrictions on who can use Debt counseling and debt review trough Help with debt, – anyone from any income group and who owes any amount of debt can apply for debt counseling. Through Help with debt
Help with debt, Debt counselors are entitled to charge you an upfront fee of R50 plus VAT for an application to have your debt reviewed. A Retainer of R300 will be kept as early cancellation fee. This R300 will be deducted off the Rehabilitation fee payable
Most also charge you substantially more for an initial review of your debts, and Help with debt may offer to review your debts on an ongoing basis, for which they will also charge a fee. But as yet there are no set amounts that Help with debt, debt counselors may or may not charge for initial and ongoing reviews.
The National Credit Regulator (NCR) plans to help lower-income earners by paying their Help with debt, debt counselors’ fees.
Before determining whether or not to accept your application to review your debt, a Help with debt, debt counselor must consider your debts and financial obligations to determine whether you are over-indebted. The NCA describes over-indebtedness as a situation in which you are or will be unable to meet all your debt obligations timorously.
A Help with debt, debt counselor will investigate your existing income and your income-earning prospects, and all your current financial obligations.
Once a Help with debt, debt counselor has accepted your application, he or she will inform all your creditors and every registered credit bureau that you have applied for debt counseling. You will not be able to access any further credit until your debts have been repaid. You will even have to cut up your credit and store cards.
The Help with debt, debt counselor will then consider your debts and financial obligations to determine what you can afford to repay each month, and will enter into negotiations with your creditors to restructure your debt.
If your creditors agree to the repayment proposal put forward by the Help with debt, debt counselor, the counselor will apply to the National Consumer Tribunal for a consent order for the repayment plan.
If your all creditors do not agree to the plan, the Help with debt, debt counselor will take the plan to a magistrate’s court, and the court will have to decide what is a fair repayment plan. In this case you could face further charges for the cost of hiring lawyers to represent your case in court.
Reckless lending
If a Help with debt, debt counselor suspects that you were given credit recklessly because you could not afford it, he or she can ask a court to decide if this was indeed the case and if so to suspend the agreement or set it aside.
Once your repayment plan is agreed, you will make payments to a distribution agency registered with the NCR and it will distribute what you pay to your creditors. The agency will be paid by way of a fee from the creditors.
What are the advantages of debt counseling
debt counseling is a credit restructuring process instituted by the National Credit Act and is enforced by the NCR
We are registered debt counselors in Pretoria and give free debt counseling advice and information to all clients in
Our debt counseling services include providing you with as much possible information on the process so that you can make an educated decision as to the fact that debt counseling might be the answer to your credit problems
The debt counseling process include that you first of all complete the informal application form so that we can assess your current financial situation. When we determine that you are over indebted we can launch a formal debt counseling application
what is debt counseling:
Debt counseling allows registered debt counselors in Pretoria, like Help with Debt, to restructure your monthly debt repayments and reduce those payments by up to 60% without increasing your total debt amount
credit and debt counseling works for consumers that struggle to pay their loans but want to pay. We get a lot of consumers in Pretoria that tell us they make debt repayments and in the process don’t keep any money for living expenses
Our debt counseling services include negotiating with your creditors to reduce your monthly debt repayments on a formal restructuring process
debt consolidation counseling is another way of looking at debt review and debt counseling. You will only pay one amount into the Payment distribution agency (PDA) towards all your creditors. The PDA ensures that no one handles your money and this eliminates any malpractice in our industry
debt counseling fees are calculated according to your budget and prescribed by the NCR as well as the Act. You do not pay any upfront fees and your debt review application pays for itself.,
credit debt counseling will reduce your monthly debt repayments giving you a better future from day one
You can include credit card debt counseling, home loans, vehicle finance and any other credit agreement you have
debt review will prevent any further legal action against you and can prevent repossession of your vehicle and house
Contact Help with Debt today so that we can explain the debt review process to you in full.
Many consumers ask us how to get out of debt review. This is very simple. You can exit debt review at any time but need to be aware of the fact that you will not enjoy the protection the Act gives you once you exit debt review
loans for people on debt review is illegal. If you are under debt review, you cannot apply for any more credit as it will be declined because of your status.
Please contact us today for debt review and debt counseling applications in Pretoria
The Debt Counsellor is appointed by the NCR set out by the National Credit Act. (section 44.(2) A person must not offer or engage in the services of a debt counsellor in terms of this Act, or hold themselves out to the public as being authorised to offer any such service, unless that person is registered as such in terms of this Chapter
The Debt Counsellor may be reprimanded by the regulator if he/she does not work in the frame work set out by the regulator and the NCA
South Africans living to pay off debt
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Johannesburg, 24 April 2014 — Most South Africans are in debt because they are living above their means. A recent survey by Momentum indicated that many South Africans have not taken advantage of low interest rates to reduce their exposure to debt.
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Credit Ombud Head of Legal Department Reana Steyn explains the benefits of debt counselling but emphasises that the consumer still has a responsibility to ensure their debts are being managed properly
DebtBusters CEO, Ian Wason, explains the Debt Counselling Process
The trend of consumer indebtedness continues in the country with many struggling to pay back their loans. There a number of debt agencies available to assist them to get out of debts. Focus is now on how theses agencies are helping and is their formula working or are there alternative. To discuss this we are joined by Saubrey Tshabalala who penned the book How to get out of bad Debt use other people’s money and resources to get rich.
For more news, visit: http://www.sabc.co.za/news
http://www.debtbusters.co.za
DebtBusters is South Africa’s leading and largest debt management company, which offers amongst other debt solutions and debt consolidation, the solution debt counselling. In 2007, the formal debt solution, debt counselling, was introduced by the National Credit Act. It is a similar process to that of debt consolidation, as it allows you to place all of your debts into one single account, rather than having the hassle of paying off multiple accounts every month. Debt counselling is a better and more manageable solution for improving your financial situation and making debt repayments, as it reduces the amount interest you are required to pay on debt repayments. Debt counselling is similar to debt consolidation, as it will enable you to get better interest rates on credit in the future.
This video takes you through debt counselling process and will enable you to see how the process is similar, yet differentiates from debt consolidation. DebtBusters debt solutions such as debt counselling and debt consolidation can be further explained by a financial consultant by calling 086 999 0606.
A DebtBusters financial consultant will assess your financial situation a draw up an appropriate monthly budget, which will enable you to meet your debt requirements and make one monthly debt repayment. Just like debt consolidation, in order to qualify for debt counselling, all you need to do is provide DebtBusters with your Identity document, bank statements and latest payslip. However, it is also essential to recognise that you have to be deemed over indebted and earning a monthly income.
Due to varying financial situations, DebtBusters will be able to advise whether debt counselling or debt consolidation is best suited to your financial circumstances. In terms of debt consolidation, our financial consultants will be able to provide you with secured or unsecured debt consolidation. However, in most circumstances, debt counselling is considered as a preferable and more efficient debt solution and will give you a second chance to build a brighter future.
Debt services such as debt consolidation, debt counselling and debt management are available on the DebtBusters website www.debtbusters.co.za. Just like debt consolidation, debt counselling can reduce costs and save you money on monthly debt repayments and interest rates. Debt counselling is a viable debt solution, just like debt consolidation and can help consumers to become financially literate and assist South Africa with overcoming the economic and social challenges it currently faces,
