Being in debt is tiring. You get paid, you surrender to necessities like clothes that have holes in them and you have one night out in a month and that’s it. And then the next month you do it all over again.
A debt counsellor can help stop this vicious cycle.
Debt counsellors help people manage their finances and eventually become debt-free by handling complex debt situations to guide over indebted consumers through the debt counselling process. In addition to providing impartial, confidential, and practical advice, they could provide financial planning, budgeting, money management and bankruptcy advice to clients whose debts have got out of control.
To help reduce monthly debt repayments, debt counsellors correspond with creditors on behalf of their clients; they assist consumers with the legal processes involved in debt counselling and keep creditors at bay.
In short, debt counsellors make repaying debt easier.
In essence, this is what they will do for you:
A registered debt counsellor should have the following personal attributes:
For a debt counsellor, experience is more important than qualifications (apart from their accreditation), which is why you’ll find that a lot of them start out in voluntary positions to build up credibility.
The best debt counsellors have a finance-related background or have worked in a role that required them to manage a budget.
However, education is the foundation and a debt counsellor needs minimum requirements, they are:
First things first, a debt counsellor will go through your financial situation and determine if you qualify for debt review. Once you qualify for debt relief, a debt counsellor will guide you through the debt counselling process and submit your debt review status.
This protects your assets from anyone you owe money to, including banks. At this point, a creditor is not allowed to contact you.
A debt counsellor can then move forward with you and give you the necessary breathing space to rebuild your finances. You then enter into debt review.
This is the process of handing over your debt negotiation to a registered debt counsellor, who then compiles your debts, examines your income, and with you, works out your instalment and interest options with creditors.
Step 1: A thorough review of your financial situation to work out your debt profile.
Step 2: Assembling all the paperwork necessary for a formal review.
Step 3: Your creditors are contacted to get confirmation and then work out a repayment schedule that suits your affordability.
Step 4: You are listed on the National Credit Bureau’s NCR Debt Help database.
Step 5: NCR will then notify all relevant credit bureaus that you have applied for debt review.
Step 6: Negotiate takes place with all creditors to confirm a repayment plan everyone is comfortable with.
Step 7: The creditors confer and an agreement is reached.
Step 8: You begin paying off your debt.
The reasons for becoming over-indebted are almost endless, some avoidable, some unavoidable. Some of the things you have no control over such as being laid off, rising living costs, and getting divorced. Some things you do have control over such as the choices you make regarding your lifestyle. This can greatly influence your financial situation.
Each individual case is unique. Make an informed decision about what is best for you. But rest assured, you don’t need to go it alone, a registered debt counsellor can help.
Contact Debt Restruct to speak to a debt counsellor today.
Find out if you’re eligible to reduce your debt and protect your belongings.
Disclaimer: This website and any information herein is not intended to be, nor does it constitute, financial, tax, legal, investment, credit, or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified professional directly.