Many people in South Africa try to solve their debt problems with more debt. It is a common misconception that if you cannot afford to pay off a loan, the solution is to take out another loan to cover it. This, however, will lead you to an even worse off financial situation, as the more […]
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
Many South Africans are struggling to meet their monthly debt obligations because of various factors, including the ever-increasing standard of living. Sadly, some don’t even know that help is within their reach. In 2007, the government introduced a programme called debt counselling to assist such consumers. What is debt counselling? Debt counselling is a debt […]
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So, you’ve reached the end of the debt counselling journey – a fantastic achievement. Like many who have been part of the programme, you are probably wondering what’s next and how your life is going to change after the programme. Here is what you should expect: Once all the necessary paid up letters from your […]
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 […]