Debt Counselling

A recent study has indicated that almost half of South Africans who have Credit accounts are in arrears. Many people seem to find themselves on the wrong side of debt collecting agencies or they continuously apply for loans or further credit in order to pay off their existing debt only to find themselves in mounting liability.

The National Credit Act (hereinafter referred to as the ‘NCA’) aims to promote an effective, impartial and accessible credit market that strives to protect consumers from ‘reckless lending’ and ‘over-indebtedness’.

The NCA has introduced the notion of Debt Counsellors. Such Counsellors have been trained to help and guide people with debt problems, to design debt repayment plans and negotiate agreements with creditors in order to enable people to afford their monthly debt obligations. This typically entails a process known as Debt Review.

But the question remains – How does one know if he or she requires debt relief? The NCA requires that consumers be referred for debt counselling before any legal action be taken against them for non-payment of debts.

There are no restrictions on who can use debt counselling. A qualified Debt Counsellor determines whether or not you meet the requirements and further establishes if you are ‘over-indebted’ (this simply means that you owe more than you are able to pay at the end of the month).

Do not hesitate to contact us if you feel that you are in need of a Debt Counsellor or any advice in this regard.