debt counselling
debt counselling - Counselling As A Debt Solution To Reduce Over-Indebtedness Among South Africans In June of 2007, The National Credit Act of South Africa was implemented. One stated purpose of The Act is to provide debt solutions for South Africans who are in over-indebted situations. Under this objective, The Act made provision for the establishment of The Debt Counsellor (DC) Body.
debt counselling - DC Body is programmed to encourage South Africans to use debt counselling and assist individuals in dealing with their debts. Over-Indebted South Africans, who are they? These people are using loans to pay off other loans. They allotted more than fifty percent of their monthly net pay to loan repayment and that restrained them from paying off their total outstanding debt. This would lead them to the so-called debt spiral. Debt solutions for over-indebted South Africans would entail the services of a Debt Counsellor. They are trained individual registered under the National Credit Regulators, another Body provided for by The National Credit Act. The Debt Counsellor conducts the Debt Counselling. What’s involved in the Debt Counselling that can lead the way to debt solutions? A Debt Counsellor will negotiate with the creditors to allow their client to have their daily living expenses covered, and allocate the leftover funds to pay the creditors. The Debt Counsellor will make enquiries into one’s financial situation and make recommendations to the Credit Provider on how one can restructure one’s debt, or initiating the suspension of an irresponsible credit agreement. If on the Debt Counsellor’s findings, that one is not over-indebted after all, one can be qualified for a “Debt Review”. Based on this “Debt Review” the Debt Counsellor will help to work out a budget that would enable one to repay its debts effectively. Debt Counselling’s advantages as one of the best option for debt solutions: The Debt Counsellor will budget one’s income, where part of it will go to one’s daily living expenses such as food, transport, rent, school fees, etc) and whatever is left would go to the payment of the debt. Under the arrangement, paying the debt is affordable. Debt obligation is paid through one payment distribution agency. This way, managing the finances is easier and it reduces banking fees. No permanent records of Debt Review particulars are kept on any Data Base of the Consumer Credit Bureau. This gives assurance that one’s name is left unblemished. A registered Debt Counsellor has the ability to give sound advice on how one can cut monthly expenses. On negotiating with one’s debt to Creditors for repayment, a registered Debt Counsellor will get more positive response than one might as the debtor. One would be relieved of stress and headache knowing one is getting a good advice, and something is being done with one’s debt problems. One is not scared to open letters anymore that it might be from the creditors collecting payments. Phone calls will not make one nervous anymore. One can sleep soundly at night knowing debt solutions are enforced to help one get out of debt. Note that the cost of availing the services of the Debt Counsellor varies. But the legislated industry standard is R50.00. A small monthly fee of 5% is included for the first 24 months for progress monitoring and 3% of one’s monthly payments.
debt counselling - DC Body is programmed to encourage South Africans to use debt counselling and assist individuals in dealing with their debts. Over-Indebted South Africans, who are they? These people are using loans to pay off other loans. They allotted more than fifty percent of their monthly net pay to loan repayment and that restrained them from paying off their total outstanding debt. This would lead them to the so-called debt spiral. Debt solutions for over-indebted South Africans would entail the services of a Debt Counsellor. They are trained individual registered under the National Credit Regulators, another Body provided for by The National Credit Act. The Debt Counsellor conducts the Debt Counselling. What’s involved in the Debt Counselling that can lead the way to debt solutions? A Debt Counsellor will negotiate with the creditors to allow their client to have their daily living expenses covered, and allocate the leftover funds to pay the creditors. The Debt Counsellor will make enquiries into one’s financial situation and make recommendations to the Credit Provider on how one can restructure one’s debt, or initiating the suspension of an irresponsible credit agreement. If on the Debt Counsellor’s findings, that one is not over-indebted after all, one can be qualified for a “Debt Review”. Based on this “Debt Review” the Debt Counsellor will help to work out a budget that would enable one to repay its debts effectively. Debt Counselling’s advantages as one of the best option for debt solutions: The Debt Counsellor will budget one’s income, where part of it will go to one’s daily living expenses such as food, transport, rent, school fees, etc) and whatever is left would go to the payment of the debt. Under the arrangement, paying the debt is affordable. Debt obligation is paid through one payment distribution agency. This way, managing the finances is easier and it reduces banking fees. No permanent records of Debt Review particulars are kept on any Data Base of the Consumer Credit Bureau. This gives assurance that one’s name is left unblemished. A registered Debt Counsellor has the ability to give sound advice on how one can cut monthly expenses. On negotiating with one’s debt to Creditors for repayment, a registered Debt Counsellor will get more positive response than one might as the debtor. One would be relieved of stress and headache knowing one is getting a good advice, and something is being done with one’s debt problems. One is not scared to open letters anymore that it might be from the creditors collecting payments. Phone calls will not make one nervous anymore. One can sleep soundly at night knowing debt solutions are enforced to help one get out of debt. Note that the cost of availing the services of the Debt Counsellor varies. But the legislated industry standard is R50.00. A small monthly fee of 5% is included for the first 24 months for progress monitoring and 3% of one’s monthly payments.