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What is Debt Counselling And How Can One Enter The Debt Counselling Process

What is Debt Counselling you may ask?

Debt counselling is a legal process that assists with the restructuring of an over-indebted consumer’s financial obligations.

Over indebted consumers will have to engage the services of a debt counsellor who will be tasked with negotiating between credit providers and the consumer with a view to restructuring a consumers debt such that the consumer pays a lower, more affordable monthly repayment.

There are three ways a consumer can enter into debt counselling i.e.: Voluntarily, Referred by a credit provider or instructed by a court.

Entering Debt Counselling Voluntarily

Any consumer who feels he or she may be over-indebted may approach a Debt Counsellor. The counsellor will  conduct a detailed assessment of a consumer’s financial affairs to determine whether the person is indeed over-indebted. If he finds this is indeed the case, the debt restructuring process commences.

Referred By A Credit Provider

The National Credit Act stipulates that a specific process be followed and steps be taken before a lender can take  legal action against a consumer who has fallen behind on their debt repayments. A consumer will be required to have received written notice informing him/her that he/she has defaulted on her account. It is a requirement that the notice also inform the consumer that he/she can engage the assistance of a debt Counsellor.

Referred By A Court

Finally a consumer can be referred to a Debt Counsellor by a court if it finds that a person appearing before it could possibly be over-indebted.

Do You Need To Explore Your Debt Counselling Options?

Debt-911 will guide and assist clients through each step in the process including representation in court if required.

If you find yourself thinking about how you are going to meet your monthly repayments, simply call us, SMS Help to 40935 or fill out the form alongside and one of our trained debt counsellors will call you to assess your personal situation and give you free advice.