Benefits

When you are struggling financially and are unable to meet your monthly debt repayments, Debt Counselling is a way of providing you with relief in the form of reducing your monthly instalments as well as interest and fees. A Debt Counsellor has to be registered with the NCR and have an NCRDC number.

 

Advantages of Debt Counselling:

  • You will be protected from legal action for a period of 60 days from the day of application and after the arrangement has been concluded as long as you pay according to the new arrangement;
  • Your assets will be protected from repossession;
  • All your creditors will have to stop calling you and liaise with your debt counsellor;
  • Fees and interest can be reduced ;
  • Every payment reduces your debt;
  • Once you have paid your short term and unsecure credit agreements and cleared the arrears on your home loan you can be issued with a Clearance Certificate;
  • Your credit bureau record will be cleared once you have been issued with a clearance certificate.

 

Things to Note about Debt Counselling:

  • Once you have been declared over indebted you cannot cancel the process, unless you go to court;
  • You will be listed at the Credit Bureau as being under debt counselling;
  • For as long as you are under debt counselling you will not be allowed to get credit until you are issued with a Clearance Certificate;
  • It takes commitment to stick to the process.

 

The overall objectives for the DEBT COUNSELLOR are to:

  • Assess the full extent of your debt situation and your affordability to repay your debts at an agreed reasonable amount;
  • Provide a debt remedy that:
  • Provides you with an acceptable standard of living while repaying your debts according to your affordability – this includes retaining the home and a vehicle where possible;
  • Provide you with an agreed, affordable and realistic monthly budget in order to resolve the situation in the shortest possible time;
  • Provide a repayment scheme acceptable to your creditors and confirmed by the Court;
  • Prevent repossession of assets where possible;
  • Rehabilitate you without detriment for the future; and
  • Allow you to get on with your life.

 

The overall objectives for YOU should be:

  • To work honestly and openly with the debt counsellor;
  • Declare all assets and liabilities – including all incomes and debts, and including bonuses and salary increases;
  • To pay the registration and debt counselling fees as disclosed at the first meeting;
  • To adhere to the agreed instalments and to pay these at the agreed dates;
  • To keep in regular contact with the debt counsellor for the full length of the agreement; and
  • To agree and commit to the debt remedy – this may include surrendering credit cards, closing accounts and realising some assets.

 

The overall objectives for your CREDITORS should be:

  • To work with the debt counsellor to assist in the normalisation of the debt;
  • To favourably consider a reasonable repayment proposal;
  • To ensure the consumer is assisted in a fair and unbiased way throughout the process of repayment;
  • To assist the consumer to rehabilitate as soon as possible; and
  • To assist the consumer to restore his/her credit worthiness as soon as possible.