5 questions to ask before choosing your debt counsellor

Many people get scammed by dodgy debt counsellors who look out for their own interest only. In the process, people lose their hard-earned money and remain in debt.

But you can avoid this situation by asking these questions when choosing your debt counsellor:

  1. Is the debt counsellor registered with the NCR?
    According to the National Creditors Act, debt counsellors must be registered with the National Credit Regulator (NCR). If you want to find out if your debt counsellor is registered, visit the NCR website or call 0860 627 627. Each debt counsellor is supposed to have a registration number.
  1. Is the debt counsellor reputable?
    When choosing a debt counsellor, make sure you choose a reputable one. Check reviews, and visit the company’s website. Call and ask questions about the company’s experience and how long it has been in the industry. You can also check with NCR if the debt counsellor is trustworthy.
  1. Are the fees in line with the NCR fees?
    Debt counsellors aren’t allowed to charge more than the fees that are prescribed by the NCR.  When you talk to your debt counsellor, all fees must be transparent. You must be told what you’re going to pay and when. The fees should include an application fee, restructuring fee, administration fee, reckless lending fee, after care fee, and transactions distribution payment fee.Before you apply for debt counselling, familiarise yourself with these fees, and if they don’t align with the NCR’s, maybe it’s time to look for another debt counsellor.
  1. Is the debt counsellor using an NCR-approved distribution agency?
    Debt counsellors are required to use a distribution agency to pay your creditors on your behalf. Make sure the agency is reputable and trustworthy. You can chat to your debt counsellor about it. The NCR can also assist you in this matter.
  1. Was the debt counselling process explained thoroughly?
    A trustworthy debt counsellor must give you an in-depth explanation of the debt counselling process. You should receive regular updates and leave your debt counsellor’s office with valuable information.

DebtBusters is the biggest debt counselling company in South Africa. We’ve helped more than 150,000 clients lift their debt burden. Don’t hesitate to give us a call on 086 999 0606 or email us at [email protected].

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