What is Debt Counselling?

If you’re deep in debt and have found yourself looking for ways to get out of it, particularly online, you’re probably stuck on Google, looking for some answer as to how you can get out of debat in the most efficient manner possible.

How Does Debt Counselling Work?

What some might refer to s a debt review, debt counselling is a perfect method for trying to get out of debt without necessarily having to deal with any legal action or restrictions being placed against you.

If you search on the internet or advise your financial provider, such as your local bank, you’ll find a lot of information on companies that offer debt counselling services. Most financial institutions, as well as creditors, will be able to direct you to a debt counselling firm, who are trained and have the necessary expertise to assist you with all your queries, as well as the entire process of debt counselling.

Debt counselling will provide you with the control of restructuring your debt, because of your legally approved plan, which is designed for you, by your designated counsellor.

It is often thought that debt counseling is the only means of restoring once financial well-being, after being indebted to the extent of having too much debt to deal with, as well as the worst-case scenario, which is bankruptcy.

Debt Counselling for You

Debt counselling involves the leg process of having yourself declared indebted, and then being directed to a trained debt counsellor, which will negotiate are new and structured repayment plan, which will also allow you to obtain the necessary court order, which will confirm your new relevant manner of payment.

Upon choosing to recruit a debt counsellor from a debt counselling firm, it is essential to check whether they are registered with the National Credit Regulator, also known as the NCRDC, which is the number one legal authority regarding debt, in South Africa.
Once you’ve reached the status of requiring debt counselling, you’ll be referred to as over-indebted, which is the best circumstance for you to be accepted by a debt counselling firm.

Declaration: Over-Indebted

Once declared over-indebted, you will be protected by the debt counselling firm and supported by a designated debt counsellor, as well as be listed by the Credit Bureau, for the prevention of any legal action being taken against you, because of you not being able to repay your creditors.

It will allow you to be protected from legal action against you for 60 days, post application, as well as after arrangements that are made to conclude, to settle a payment arrangement.

It will require you to comply with the payment agreement, of which you’ve decided on and will refrain your creditors, or any financial institution, from contacting you, as they will have to communicate directly to your debt counsellor.

Reaching the status of being over-indebted means that you won’t be allowed to obtain credit, and will be issued a Clearance Certificate, as per your obligations, which should be in line with the National Credit Act.

Finding the Right Debt Counselling Firm for You

If you’re looking for a debt counsellor that will suit your needs regarding financial and debt recovery assistance, you should choose one that fits the following requirements;

  • A debt counselling company that assesses the extent of your financial and debt status.
  • A debt counselling firm that will provide you with the necessary debt solution and assess your assets to make up for the debt you owe.
  • One which will be able to design a repayment and budget plan, while possibly lowering your living standards, but still provide you with one that is acceptable and affordable, allowing you to repay your debt faster.
  • Providing you with financial rehabilitation, to support your future and move on with your life after you’ve settled your debt.
  • The prevention of repossession of any of your assets, with the biggest being your home, if you have one, as well as your primary vehicle.

Why Debt Counselling is the Answer to Solving All Your Debt Problems

If you’re looking for a solution to solving your current debt status, the best way to liaise and settle debt with creditors is to hire a debt counsellor.

It is mainly because the process of creditors contacting you and asking for payment, referring to the law and Credit Bureau, might leave you baffled with stress and anxiety, without providing you with a helpful method to get out of debt and restore your financial well-being.

Appointing a debt counsellor will allow you to avoid such stress, as they will remain in contact with your creditors and will enable them to consider repayment proposals that are beneficial to you. They will also ensure that consumers are assisted in a professional manner where needed, support them with a rehabilitation plan, and finally, help them to restore their credit record and credit score.

Ultimately, they will also aid in your financial well-being in the future and allow you to rest assured that you will recover from your current financial status, even if it seems impossible to do so.