Contrary to the stigma that consumers are indebted as a result of reckless spending or borrowing, most consumers who approach DebtBusters for assistance do so as a result of unforeseen circumstances. Many young people set huge expectations for themselves even before they’ve entered the ‘real world’. There is often a set idea of what success […]
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.
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