What is Debt Counselling?
Debt counselling is a formal debt solution, introduced by the National Credit Act in 2007. It is specifically tailored to assist over-indebted South Africans who are battling to make monthly debt payments by offering them an affordable financial rehabilitation plan. Debt counselling is a process which involves restructuring and reducing your monthly debt instalments, combining them into one, affordable monthly payment.
What does it mean to be over-indebted?
There are currently millions of South Africans who are over-indebted. To be over-indebted means that your net income does not cover your living expenses and your debt repayments. This can be due to a number of reasons such as excessive spending and unforeseen circumstances that result in unplanned costs.
There are a few tell-tale signs that you may be over-indebted:
- You are living beyond your means and purchasing on credit.
- The rising costs of food, electricity and transport have made it difficult or impossible for you to pay for your living expenses every month.
- An unforeseen circumstance such as an unplanned child, death, disability, divorce or illness has resulted in you incurring expenses that you cannot afford to pay back.
- Loss of employment or a pay cut has resulted in you needing to default on your monthly debt repayments.
- You are constantly worrying about money, borrowing money and being harassed by credit providers.
How does the process work?
DebtBusters will negotiate with your credit providers to lengthen the time frame in which you pay back your debts, and to lower the interest rates and fees on your debts. Lengthening the payment terms will allow you a longer time period to pay off your debt- resulting in lower monthly instalments, and lowering the interest rates and fees on your debts will save you a considerable amount of money.
The main purpose of Debt Counselling is to lower your monthly debt instalments, thereby making it more affordable for you to pay every month, and allowing you to afford your living expenses. Once you are under the Debt Counselling process, your debt repayments will be reduced to an amount that you can comfortably afford, you will make one combined, reduced monthly payment as opposed to paying each credit provider individually, and your Debt Counsellor will apply to get a court/consent order on your behalf, which will provide you with legal protection from your Credit Providers.
How do I apply for Debt Counselling?
Applying for Debt Counselling is a simple process.
You can either:
- CALL: DebtBusters on 086 999 0606
- VISIT: DebtBusters at 22 Leeuwen Street Cape Town (CBD)
- SMS: “Debt Counselling” to 47546 to receive a free call back.
A consultant will then send you an application pack. After you have filled out the application pack, attached the relevant documents, signed and returned to DebtBusters, you have successfully applied for Debt Counselling.
Take control of your life by using our reliable and helpful debt counselling services today