Debt Counselling is your best option in tough financial times

2 January 2016

The South African economy is going through bumpy times, with what’s seems to be never-ending price increases everywhere you look; electricity, petrol, food, water and interest rates. The challenge is that our income does not appear to be increasing at the same rate. As a result, many South Africans have developed a bid dependence on credit to pay for day to day expenses. This is never good and the consequence is too many people being pushed over the financial cliff edge. If you are in a situation where your salary does not cover your monthly expenses and debt repayments, then you should seriously consider debt counselling. It’s by far your best option! Here’s why…

Debt Counselling helps you manage your finances in a stress free way

Debt counselling is revolutionary process, designed to assist South Africans who are struggling with their finances. It aims to assist individuals to manage their debt in an affordable way. Once signed up for debt counselling, those that were previously defaulting on their monthly debt repayments are able to make monthly payments on time, every month.

The Debt counselling process in short

  • Debt Counselling is a regulated process outlined in Section 86 of the National Credit Act (NCA).
  • It was designed as a tool to protect and help defaulting consumers to restructure their debt repayments in order to avoid further defaulting and legal action on their credit obligations.
  • It is a legal process and as such you will receive legal protection from your credit providers.
  • Your debt counsellor negotiates with your credit providers on your behalf and proposes a new payment plan that is affordable to you.
  • Instead of making multiple payments to all your credit providers, debt counselling allows for one fixed monthly debt repayment which gets distributed to your credit providers each month.
  • Once all your unsecured debt is repaid, you receive a clearance certificate stating that you are debt fee.

Life after debt counselling

One of the most frequently asked questions by individuals looking to apply for debt counselling is “when I am done paying, will I be able to regain access to credit?” It is regulated that when you have paid up your unsecured debt, a clearance certificate is sent by your debt counsellor to all your credit providers and to all credit bureaus declaring that you are debt free. The credit bureau updates your credit records and the debt counselling flag on your credit record is cleared. It’s a new start for you and it will appear that you’ve never had credit before. At this point you can start building your credit worthiness again so that you can qualify for credit, including vehicle finance and home finance.

Debt counselling is a long-term debt solution

Debt counselling is a long-term solution for those that are over indebted and should not be seen as a quick fix to getting out of debt. It requires commitment to the process and you need to be serious about wanting to be rid of your debt. Debt counselling is growing in popularity as more and more people are realising that it is a real solution that reduces your reliance on credit and changes the way you manage your personal finance.

If you are unable to manage your debts or pay your creditors on time because you can’t afford your debt repayments, DebtBusters can help you take back control of your financial problems today. Its your best solution. Call 086 999 06 06 and speak to an expert consultant today!