Highly trained individuals called debt counsellors help you deal with your financial downfall. These trained individuals mediate on your behalf with your creditors, trying to reach an agreement that allows you to cover your expenses and cover your creditors at the same time.

Debt counsellors independently conduct enquiries into your financial circumstances. They do this not only for the benefit of the consumer, but also to bring forth an alternative to the courts and credit providers about restructuring your financial life line.

What are the Pro’s of debt counselling?

• Once a consumer has made an application for debt review, credit providers can no longer attach any assets or take any further legal action.
• There’s no permanent record of being under debt review, meaning that unlike other avenues there is no black and white that could ‘tarnish’ your name.
• Repayment of your debt obligations are done through one monthly payment.
• A debt counsellor will set aside monies for your necessary necessities and whatever monies are left, will be used to cover your debt.
• Debt counsellors will never let you pay more than you could reasonably afford.
• A debt counsellor is most likely to get a positive response from creditors than you would in your personal capacity.
• A debt counsellor will be able to advise you on ways to cut your monthly costs.
• The most important point of all is the relief of stress, knowing your financial sinkhole is being taken care of by professionals.

Need To Know Tips When Receiving Debt Review

• While under debt review one cannot get any access to new credit (You first have to take care of your bad credit, clear your name and get on track before you’ll be considered to get new credit).
• Different debt counsellors may charge slightly different amounts.

Contact us today by visiting us today (www.debtcheck.co.za or mail: info@debtcheck.co.za)

Scenario:

A single mother, who works an average 9-5 job supporting three children have to deal with school supplies, daily necessities for herself and her children.

Most times these single mothers have no support from fathers regarding maintenance.

This single mother earning roughly R5000 per month would then indebt herself for housing costs, electricity, meat, groceries all excluding the necessities children need on a daily basis.

It is most likely this hard working mom would then indebt herself as she has accounts at various retailers to manage her daily expenses. Baring in mind of all interest rates, the influx in the exchange rates. The economy as a whole which has seen meat, electricity and essential grocery items increased rapidly during the past financial year.

The salary this mom would receive would thus not have her being able to attain a clean financial record.

Many people fall into this whirlpool and find themselves receiving court summons. Also, many people are not as educated regarding laws protecting them from the dangers of being in debt or even blacklisted.

Solution:

There is the fallacy that many people are embarrassed to seek help when they find themselves in a debt crisis. Thus, we ask people to contact Debt Check. We have reliable and dependable consultants who can assist you and give you a sense of relieve regarding your debt crisis.

Debt is manageable, you just need to trust us!

Contact us today by visiting us today (www.debtcheck.co.za or mail: info@debtcheck.co.za)

Once a credit provider applies for judgement against you, you cannot oppose the court application on the basis that you are willing to seek debt counselling, if you resisted debt counselling when it was first offered to you.

WHAT IS A SECTION 129?
A section 129 letter is a notice issued by a credit provider that it intends to take legal action against a consumer who has defaulted on a loan and the loan in question is in arrears.The National Credit Act (NCA) states that before a credit provider can launch default proceedings, it must notify you, in writing, of your right to refer the credit agreement to a debt counsellor, an alternative dispute resolution agent, the Credit Ombudsman or a consumer court, in an attempt to resolve any dispute related to the agreement or to agree on a plan to settle your debt. The notice gives you 10 days in which to choose a remedy and notify the credit provider.
Although the National Credit Regulator is of the view that a section 129 letter is a notice of impending legal action, in the spirit of the Act, the courts have interpreted it differently.
Paul Slot, the president of the Debt Counsellors Association of South Africa, says this interpretation is “grossly unjust to consumers”, because it denies you a remedy (debt counselling) offered to you in the notice. This was never the intention of the NCA.
Legislators agreed and have addressed this in the National Credit Amendment Act, which has been assented to by the president.

OVER-INDEBTED CONSUMERS NEED TO CHANGE THEIR LIFESTYLES
The courts will not be sympathetic to consumers who are in debt but who do not want to lower their standard of living. Consumers have an emotional attachment to homes, cars and their lifestyles, which contributes to a high fallout rate among consumers who approach the National Debt Mediation Association (NDMA) for help. This could become a major problem to many consumers living on a high expenditure budget trying to keep up with society. Most times, consumers are indebting themselves into product and services the generally don’t need or use. The section 129 notice offers an avenue for consumers to resolve their payment difficulties by making use of various mechanisms, but consumers wait too long before asking for help. If they do ask for help, some credit providers are not helpful, or the consumer isn’t able to conduct effective negotiations on their own. Many consumers are not educated in the financial field to make such negotiations on a mediation level as a debt counsellor could do.
*Source: IOL*