Debt Counselling: Finding Financial Relief

Are you struggling to keep up with your monthly debt repayments? Feeling overwhelmed by mounting debt? Debt Counselling can provide a structured solution to help you regain control of your finances.

How Debt Counselling Works:

1. Assessment: Our qualified Debt Counsellors will assess your financial situation, analyze your income and expenses, and determine if Debt Counselling is the right solution for you.
2. Restructuring Plan: We’ll develop a personalized debt restructuring plan that involves:
   • Reduced Interest Rates: Negotiating lower interest rates with your creditors.
   • Reduced Monthly Installments: Lowering your monthly debt payments to an affordable level.
   • Extended Repayment Terms (where applicable): Adjusting repayment periods to make your payments more manageable.
3. Negotiation with Creditors: We’ll negotiate these terms with your creditors and obtain their consent to the restructured payment plan.
4. Court Approval: Once all creditors agree, your debt restructuring plan will be submitted to the court for approval.
5. Monthly Payments: You’ll make a single, consolidated monthly payment to a Payment Distribution Agency (PDA) like Hyphen PDA. The PDA will then distribute these funds to your creditors according to the agreed-upon plan.
6. Clearance Certificate: Once all your debts are settled, you’ll receive a Clearance Certificate from the court. This certificate will remove the Debt Review flag from your credit record.
7. Regaining Credit Access: Within 30 days of receiving the Clearance Certificate, you can begin to rebuild your credit history responsibly.

The Benefits of Debt Counselling:

• Reduced Financial Stress: Lower monthly payments alleviate financial pressure and improve your overall well-being.
• Improved Cash Flow: Increased disposable income allows you to better manage your daily expenses.
• Credit Score Improvement: By consistently making on-time payments through the Debt Counselling program, you can improve your credit score over time.
• Protection from Creditors: Debt Counselling provides legal protection from creditor harassment and collection actions.

Why Debt Counselling Was Introduced:

Debt Counselling was introduced in South Africa to address the growing problem of over-indebtedness. Prior to the National Credit Act, the credit market lacked adequate consumer protection, leading to:

• High levels of consumer debt: Aggressive marketing tactics and easy access to credit contributed to a surge in consumer debt.
• Limited consumer options: Sequestration and administration were the primary options for over-indebted individuals, often resulting in severe consequences for creditworthiness and financial stability.

Debt Counselling offers a more sustainable and consumer-friendly solution, providing a path to financial recovery for many South Africans.

Contact us today for a free consultation and let us help you regain control of your finances.

Call us at 0860 017 454 or complete the form above for a free call back.