Debt Counselling

What is Debt Counselling?

Smartcents People-06

Debt counselling is a formal and closely managed debt solution, introduced by the National Credit Act in 2007. DebtBusters debt counsellors guide clients with debt problems through debt review, enabling them to make monthly debt repayments and gain financial stability.

DebtBusters debt counselling process helps clients who are struggling to make debt payments, by entering them into a structured debt repayment plan with their credit providers, in order to ensure they take firm control of their financial situation and settle their short and long-term debt.

DebtBusters has mandates with 95% of credit providers to extend the terms and reduce interest rates down to zero if necessary. DebtBusters aim to get clients debt free in 60 months. With 90% of DebtBusters debt review proposals to credit providers being accepted, debt counselling can be considered as a highly effective method of becoming debt free.

Benefits of debt counselling:

  • Debt counsellors will formally review the clients finances, develop a suitable monthly budget and negotiate with credit providers on their behalf
  • Enables clients to make monthly debt repayments
  • Relieves clients from creditors hassling for money
  • Prevents clients from declaring bankruptcy
  • Maps out the path for reducing bad debt and becoming debt free
  • Decreases summonses and judgements against clients
  • DebtBusters debt counsellors will educate clients about their financial rights and how to work better with their finances

Qualifications for debt counselling in South Africa:

  • Determined by a DebtBusters debt counsellor, clients will be classified as over-indebted and considered for debt counselling “if taking all financial circumstances into consideration, a client is deemed to be unable to repay their debts”.
  • Legally, clients applying for debt counselling, must be employed and earning a monthly income

Most importantly, DebtBusters debt counsellors aim to give clients hope for a future of financial wellbeing and the ability to borrow credit again.

More Articles about Debt Counselling

June
3

Why going on a credit diet could be the best thing for you

When consumers ask for our help, there seems to be one particular element in the process which make them hesitant to sign up for the debt counselling process: Not being able to get more credit during that time… The thousands of client who have successfully completed the process will however all agree – they would […]

June
1

The Clearance Certificate: The ultimate goal in your Debt Counselling journey

Debt counselling is a journey which requires dedication and commitment for up to five years of your life, so we know receiving a clearance certificate at the end of the journey is a momentous occasion for both our clients and our staff who walk side by side them during this time. DebtBusters has already issued […]

April
25

Start your journey to financial freedom…today!

Celebrating our country’s 24th year of democracy is one thing, but if you are caught in a web of debt as an individual, that freedom does not mean much…. Take that first step to really experience financial liberation and let us assist you with the debt counselling process. Debt counselling is a closely regulated solution […]

January
24

Don’t stick your head in the sand: the consequences of ignoring debt

Debt can very easily spiral out of control; it’s easy to take out, but can be significantly harder to pay off. When the debt hits the fan, many people tend to stick their heads in the sand by ignoring it. Feeling overwhelmed by debt can be scary, but you will not do yourself any favours […]

June
30

There is Life after Debt!

Saving is very challenging for most South Africans. Spending money is what we all prefer to do. Too often, we spend beyond our means by using credit that we often cannot afford to repay.

Statistics released by the South African Reserve Bank (SARB) last year confirm that South Africa has one of the worst savings rates in the world. South Africans don’t save for unforeseen expenses and neglect to plan adequately (if at all) for their retirement.

View more debt-counselling posts → Back to Debt Solutions