Credit Debt Counselling for a Brighter Future
Credit debt counselling is often misunderstood by the millions of South Africans who are over indebted and cannot meet their monthly financial obligations. It is of utmost importance that you understand what the process entails and what is expected of you before you apply for debt relief. Research the National Credit Act well and pay specific attention to the areas that relate to you, the consumer. Although the Act was instituted to protect consumer rights and to assist over indebted people, it is not there to short change credit providers by writing off your debt.
It is also important to understand that not all applications for debt review are accepted and that you must keep paying any amount that you can afford to all your creditors even though you have applied for credit debt counselling. Once your application is successful, you will receive instructions to pay a lower monthly instalment to the National Credit Agency. The National Credit Agency will then re-distribute the funds to all your creditors according to a repayment schedule prescribed by your debt counsellor.
The debt review process is there to assist you in eliminating your debt and not to eliminate your debt for you. A debt counsellor will not be able to negate your debt but merely has the power to negotiate lower interest rates and monthly instalments from your creditors. Your counsellor can also intercede with the various credit bureaus on your behalf to ensure that your credit rating reflects your debt review status. This means that although you will not be able to enter into any new credit agreements during this period, your credit rating cannot be changed.
To make sure that you have all the facts and understand the credit debt counselling process, please contact us and we will ensure that a debt counsellor will assist you.
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