Consumer Credit Counselling

If you’re drowning in debt, Consumer Credit Counselling is a solution you should consider.

Debt Counselling is a service provided by the Consumer Credit Counselling agency and is regulated by the National Credit Regulator based in Johannesburg. Their primary function is to help you get out of debt as quickly and affordably as possible.

When are you over-indebted?

If 60% or more of your monthly income is spent on paying bills or if your monthly expenses exceed 80% or more of your monthly income, you’re probably over-indebted. In this case, you should consider reducing this through debt counselling.

Have you found yourself borrowing money to repay creditors? Do you juggle payments because you simply cannot afford to pay everyone who needs to be paid every month?

If so, you may be over-indebted and should look at Consumer Credit Counselling as a viable solution to help you become debt free.

How does debt occur

You may have gotten into debt through bad choices like gambling or an over-indulgent lifestyle. Perhaps your debt is a result of accumulating credit or micro-loans.

Whether poor financial planning was the cause or the investments you had lost money due to poor market performance, it really doesn’t matter. The Consumer Credit Counselling agency can help you pay off all your debt at an affordable rate while you get on with your life.

Future credit facilities

Once you’re completely debt free you’ll be able to obtain credit again. However, while you’re going through debt counselling you won’t be able to access credit from any financial institution. The main purpose of this process is to get out of debt and stay out of debt.

The Consumer Credit Counselling agency is regulated by the National Credit Regulator. They provide debt counselling services that help consumers who are struggling to get out of debt.

They can help with advice on budgeting, how to negotiate a payment arrangement with creditors, and how to restructure your payments to get out of debt. They also provided a free credit report and did a debt assessment for you - completely free of charge.

Understanding debt, the law, and debt counselling

They’re also able to provide other services and educational programs related to debt counselling and the debt counselling process. They can also provide help in getting to grips with regulatory frameworks like the National Credit Act to help you know and understand how these processes work.

Last but certainly not least, they investigate your credit agreements, including garnishee orders. They can provide a credit report and can give you a workable credit solution plan.

Applying for debt counselling

Once you apply for debt counselling, they’ll begin the process of notifying your creditors and the credit bureaus. They’ll inform them that your financial situation has changed and that you’re now under debt review.

Your creditors will provide the Consumer Credit Counselling agency with a complete list of all your outstanding debt balances. Once your debt counsellor has this complete list they’ll draft a proposal which they’ll confirm with you. This proposal will be sent to your creditors.

All creditors listed in the counsellor’s proposal will form part of your debt review process. You’ll then start the repayments as per the payment plan proposal. The last step in the process is that your debt counsellor will apply to get the proposal made and an order of the court. There’s a service fee applicable to this process which is clearly outlined in the application process. This is your first step to becoming debt free.