What Is Debt Counselling?

Debt counselling is a formal legal process that provides a consumer who has been declare ‘over indebted’ for counselling regarding the maintenance of the said consumer’s expenditure.

Debt Counselling Has Evolved In The Last 10 Years Since It Was Introduced In South Africa.

 When debt counselling was introduced it set off well with a monthly clientele of over 2000 clients monthly. Thus, consumers felt the immediate relief of knowing their debt could be taken care of, other credit industries like the National Credit Regulator (NCR) and other stakeholders within the credit sphere were also trying to comply into the new process of debt counselling which was taking off full speed in South Africa.

Consumers Had Limited Options

 *Voluntary Sequestration: Which could leave consumers blacklisted for more than 5 years. 
 *Administration Order: Which does not alleviate interest inflations and paying off accounts within a particular time frame. This process can also leave consumers blacklisted for up to 9 years.

 *Consolidation Loans: More expensive than current debt obligations due to high interest rates.

This becomes a problem as many of the factors were of the main reasons why (aside from clients refusing to pay) why banks foreclosed on consumer’s assets. Banks then took consumers to court, ordering them to pay the original installment and interest rates which grew annually. 

The Revolution Of Debt Counselling

Major changes evolved in 2016 seeing debt counselling taking a new course and reaching more clientele. Debt counselling has seen a massive 15 000 clientele growth on a monthly basis and the numbers are still growing. Inflation rates, food and fuel increases are part of why consumers are opting for debt counselling, as they are seen to be skipping debt payments as the current inflation rate is leaving consumers with next to nothing.  

How Can We Help?

 *Sending a proposal where a minimum of 80 % of the original installment for a bond with a prime plus 2 % interest is paid.

 *Paying 70 % of the original installments on vehicles with a prime plus 2 % interest.

 *Have all unsecured debt paid within a 60 month period. Depending on a consumer’s circumstances we could write off interest rate monthly fees to 0 %.

 *Reduce credit life insurance products through our sister company (INCheck Insurers).

 So before legal action is taken against you as the consumer, contact our offices to assist you and negotiate to creditors on your behalf.

We are here to make your financial doubt cloud easier for YOU!

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