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Do I need debt counselling?

Article provided by Debt Rescue

South Africans have a big appetite for debt. Due to the low employment rate and low incomes, consumers are spending more, taking out more loans and spiralling deeper into debt. Over 25% of South Africans are unemployed and almost half of active credit consumers are in arrears.

The danger of this is that when debt becomes unmanageable and you start missing payments, creditors can take legal action against you and you can become blacklisted. To avoid being blacklisted, you need to acknowledge you have a problem with debt and seek help from an NCR registered counsellor.  The debt counsellor will assist you with a legal debt management plan.

Benefits of debt counselling:

  • A debt counsellor acts as a mediator between you and your credit providers. Debt counsellors have the legal right, experience and skills to negotiate with credit providers on your behalf when it comes to extending repayment terms and instalment reductions. Plus, your debt counsellor will thoroughly assess your situation to get to the root of your problem so that you can free up disposable income to pay the money you owe, while still leaving you money to cover all your other living expenses.
  • You only pay one reduced monthly instalment towards your debt. This makes it very easy and convenient.
  • You won’t get harassed by creditors while under debt counselling. While under debt counselling, you are under the protection of the NCA. This means, your creditors are not allowed to contact you or take new legal action against you. Therefore, your assets are safe if you stick to your agreed monthly instalments to your debt counselling company.
  • Once your debt is repaid, you will be issued with a debt clearance certificate.
  • Your NCR registered debt counsellor will provide you with debt counselling and advice that will set you up for a debt-free future. The point of debt counselling is to get you out of debt and help you make wiser choices in the future in terms of credit.

Get debt counselling. Debt Rescue can help you become debt-free.

Debt Rescue is a proud Partner of the NSBC.