You may be familiar with the term “debt counselling”, but perhaps you have questions around the process and specifically how long it takes to complete. While the general time frame is 60 months or between 3 to 5 years, it is dependent on how much debt you have and how much you can afford to […]
What is Debt Counselling?
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
If you’re struggling with managing your debt, you may be considering debt counselling or a debt consolidation loan as possible solutions to ease the financial strain. It is important to understand the difference between these two debt solutions, as although both are aimed at making managing your debt easier, they are two differently designed processes. […]
To many South Africans the term “debt counselling” is seen as some sort of financial curse word. That if spoken, it swallows any hope you have of a healthy credit record. (Which is a complete myth!) But how did one of the best debt solutions inherit this stigma? And what are the other common myths […]
Prior to 2015, if a consumer wanted to exit the debt counselling process , they would have to contact the respective Debt Counsellor and request cancellation, in which case a Form 17.4 (voluntary withdrawal from debt counselling ) would be issued to all parties involved and the consumer would be able to successfully withdraw from […]
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 […]