The South African Banking Risk Information Centre (SABRIC) has warned consumers to be careful of false promises from Debt Counsellors who may be abusing their profession and the debt review process. Luke Hirst, MD of Debt experts DebtBusters, says ‘Yes, I agree that some debt counsellors are not offering clients the full information upfront and […]
3 July 2015
Financial terms can be confusing, especially when you have never heard them before. Have you heard about debt counselling? Are you unsure about the terms surrounding debt counselling? This is why at DebtBusters, we want to improve your understanding of debt counselling by giving you a debt counselling glossary.
Debt Counselling is a debt solution aimed at providing consumers with immediate debt relief. Below are the most important terms we think you need to know about debt counselling:
Debt Counselling is a formal and legal debt solution, which is designed to assist consumers in making their monthly debt repayments.
A debt counsellor is a legally registered individual who offers assistance and advice to consumers who are over-indebted.
What is a PDA?
A PDA is a payment distribution agency which is responsible for distributing a consumers monthly debt repayment to their creditors.
What does “in COP” mean?
COP is a term used in reference to your marriage contract. This means you are married In Community of Property.
What does ANC mean?
ANC is a term used in reference to your marriage contract. This means you are married with an Ante Nuptial Contract.
What is interest?
Interest is the percentage of money, charged by a credit provider, on the total outstanding balance of money owed by a consumer to a credit provider.
What is a clearance certificate?
A clearance certificate is a letter, issued by a debt counsellor, which states that a consumer has settled all their debt as per their debt restructure plan.
What is a credit provider?
A credit provider is a registered institution that allows consumers to borrow money from them.
What is a credit bureau?
A credit bureau is a financial institution responsible for gathering and storing data on a consumer’s credit history.
What is a credit report?
A credit report is a record of all money that a consumer has borrowed, from all credit providers.
Remember, if you are struggling with your debt repayments and are looking for an affordable solution, Debt Busters Debt Counselling process is the most trusted debt solution available for you.
Call DebtBusters on 086 999 06 06 to speak to an expert consultant or visit Debtbusters for more information on debt counselling or SMS “Debt Counselling” to 47546 to receive a free call back.