A consumer is considered to be over indebted if the money available after payment of essential expenses is not enough to pay all other debts. Some indicators of over indebtedness are:
1.You use your bank card and overdraft account features to pay financial obligations like buy food and other requirements.
2.You borrow money to pay other debts.
3.You skip payments in order to pay others because you cannot keep up.
4.You cannot pay your expenses at the end of the month.
5.You receive letters from creditors.
Debts guidance is a process of supporting customers that are relevant to debt problems through:
2.Restricting their payments
3.Negotiating with lenders on their behalf
4.Monitoring their payments while providing after- care services
Debt counselling is done by debt counsellor who is registered with the National Credit Regulator (NCR). Debt counsellor can work independently or as part of an organization. A consumer who is ever indebted may approach a debt counsellor directly, by his/her credit or by the magistrate court.