Debt counselling was introduced by the National Credit Act in 2007, and is a formal process affording over indebted consumers to enter a structured debt repayment process with their creditors.
The process of registering with a debt counselor suggests that you are over indebted and that you intend to become debt free and is not the same as filing for bankruptcy. Debts will still have to be paid, albeit over a longer period of time or with a lower interest rate. A registered debt counselor will engage with their client’s creditors and in consultation with the client, will devise an affordable repayment plan enabling the person to emerge debt free after the repayment period.
- How do I know if I qualify for debt counseling?
- If you are being harassed by your creditors
- Unable to meet your monthly debt repayments
- Don’t want to declare bankruptcy
- Wish to live debt free
Additional Qualifying Criteria.
According to the National Credit Regulator, if an individual is unable to repay their debts, taking their financial circumstances into account, they may qualify for debt counseling.
The individual must be gainfully employed and earning a regular income.
Take advantage of Debt 911’s Free Consultation.