How to Apply for Credit Under the NCR

According to National Credit Regulator, an average of 6500 consumers apply for debt counseling on a monthly basis and more than 360,000 consumers since the inception of debt counseling. This statistics indicate that the struggle to manage debt is a problem that all too many consumers are familiar with. This point fact that there is a definite need for consumers to improve the management of their finances.  When consumers find themselves in a tight financial situation, the ability to manage their debt may become all the more challenging. This dangerous tendency leads consumers into the debt-spiral which can prove difficult to break free from. This is the reason that the integral role that debt counsellor play in the alleviation of over-indebtedness is of considerable importance. 

Applying for credit under the NCR

Application requirements – The Act requires that the credit provider must provide the consumer with a pre-agreement, containing the main features of the proposed agreement and a quotation of the costs, before entering into any credit agreement which is to be binding on the credit provider for 5 days. The purpose is to provide all consumers with an opportunity to shop around for the best deal, within the 5-day period. 

Credit Assessment – The consumer will be required to provide detailed information to the lender. This may include a detailed statement of income and costs, a household budget and details of other credit commitments in order for the lender to assess affordability.

Consumer credit records – The Act requires the credit provider, upon entering or amending or terminating a credit agreement, to report the transaction to a credit bureau.

Records – The Act requires that credit providers keep records of all applications for credit, credit agreements and credit accounts for a prescribed time.

 

From Debt to Riches: NCR

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

  

How plan a financial budget to get out of debt?

With a little planning, you can reduce your debts on your own. Payplansolutions.co.za shows you the tricks and fastest way to reduce your debts. We also offer debt counseling to those who need help with budgeting and credit issues. Our certified counselors take the time and provide you a specific advice. You and your counselor will work together to:

• Assess your current financial situation

• Develop a realistic spending plan

• Establish achievable financial goals

• Make a personal strategy for success

No debt problems are impossible. It might not be simple, but there is always a route. Debts are urgent as it is easy to spiral rapidly into trouble. We provide offer our members long term financial success as well as short term debt management programs and debt consolidation. 

Debt is not just a financial issue; in fact it feeds into all elements of your lifestyle. So alternatives are extensive and varied; from cutting interest costs, budgeting or simply getting free one-on-one debt help.

Benefits with Debt Review Process

Most things in life that stress us out like car accident, a divorce and a death in the family are all happen and then they are over. But owing money can become completely inescapable. Debt is one of the few stressors in life that does not go away. The stress of debt counseling is just bad in general for our health and effects on your physically and mentally health. The amount we worry about, we can do nothing about it. But the studies about our financial decisions show there are healthier ways to manage and invest our money, which eventually reduce the pressure we feel.   

If you have a lot of debt and you cannot afford to pay your debt, then you need to consider applying for debt review. We have debt counselors with intensive experience in debt mediation and review. Our counsellor offers a service that is skilled and professional, but still adds a personal touch to everything that they do. Our service includes payment negotiation with your creditors to offer clients reductions in outstanding amounts due. Not all but most creditors agree to reduce overall debt amounts which are beneficial to you because it will enable you to pay your debt much faster than what you would originally have been able to.