Debt counselling explained
Debt Review or Debt Counselling is a process in terms of the National Credit Act, Act 34 of 2005, where a consumer who is over indebted (struggling to maintain monthly debt repayments) applies through a registered Debt Counsellor to assist him / her in reducing the monthly repayment amount.
According to the latest Statistics from the National Credit Regulator, up to 10 million South Africans are in arrears with their debt repayments. These over-indebted consumers are likely to have legal action instituted against them.
Consumers are advised to seek Debt Counselling assistance as soon as they realise they are struggling to satisfy their obligations under their credit agreements.
The advantages of Debt Counselling is that Credit Providers can not issue summons after the debt review process has been initiated and they must act in good faith and participate in the process.
During the Debt Review process, the Debt Counsellor will negotiate a reduced installment and interest rates with your credit providers. The new agreement will be referred to a Magistrate Court to be made an order of the court for the consumers protection.
Debt Solutions Nelspruit has more than 10 year’s experience as registered Debt Counsellors. The consultation is free of charge, where a credit assessment will be done. Our legal team are experts in dealing with all Debt Review related matters.
We have offices in Nelspruit and Bushbuckridge, but can also assist our clients telephonically or via e-mail applications.
Website: www.debtsolutions.org.za
Facebook page: Debt Solutions Nelspruit & Bushbuckridge
