Below 50% of South Africans are struggling with debt and according to statistics released by the National Credit Regulator, the number of debt consumers had increased by 71,000. However there is a helping hand for consumers who are struggling to meet their monthly payments in the form of debt counseling by providing budget advice, negotiation with credit providers for reducing payments.
Debt counseling services are offered by registered debt counselors. Consumers can also verify the debt counselor’s registration by requesting the registration certificate which should have the NCR logo, clearly displayed name, ID number and the NCR registration number of the counsellor.
However, debt review fees are dependent on the consumer’s disposable income, means consumers do not have to borrow money to pay debt review fees. Details of the current fee guidelines can be obtained from the NCR website at www.ncr.org.za
Additional Information for Consumers under debt counseling is:
• When a Section 129 letter has been issued, the credit agreement will not be included under debt counseling. So, please be pro active and don’t wait until it is too late.
• Consumers cannot apply for further credit whilst under debt counseling
• A consumer’s credit bureau profile will display a debt counseling flag until a clearance certificate is issued or the consumer withdraws from debt counseling
• If your circumstances change, please notify the debt counsellor immediately
• If the debt counsellor is un-contactable, please contact NCR immediately