What is debt counselling?
Introduced by the National Credit Regulator in 2007. Debt counselling is a formal debt management solution. Trained individuals referred to as Debt Counsellors will help you to deal with your debt through debt counselling sessions, this counselling will then assist your battle to repay your debt obligations and become debt free in an affordable manner.
Debt Counselling is most suited to consumers who are over-indebted and are struggling to repay their debts and in most instances have missed debt repayments.
Once you are under the debt counselling process the following will occur:
- Monthly payments are reduced to an affordable level and merged into one payment each month
- Credit providers are negotiated with by your debt counsellor to reduce fees and interest rates on all your accounts therefore saving you money
- A court order is applied for on your behalf providing you with the necessary legal protection from the credit providers
- Once all of your debt has been repaid the credit bureau gets updated