Debt Counselling | Debt Management

 

 

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:

1.Budget advice

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.

DEBT REVIEW IN SOUTH AFRICA

Debt Review process was also implement in order to make sure that debt counselor follow strict and right guidelines when assisting clients with gaining their financial well-being. When you are under debt review you are protected from annoying creditors and debt collectors. Once your debt review relevance is approved by your debt counselor, your creditors will be well-versed that they have to contact your debt counsellor directly. Debt review is a useful method of assisting over indebted consumers to find a way out of their debt trap and we are able to assist most over indebted clients with this option. However depending on a person’s circumstances the option of intentional confiscation may be a better option. The main advantage of a voluntary surrender of an estate is that a person’s debts are effectively “written off” and they can start building a new estate without carrying these debts with them. The debt review has certain similarities to an administration order but one of its main advantages is that an administration order can only be used should the total debt that are due and payable by the creditor be an amount of R50,000.00 or less. There is no such limit for a debt review. 

Debt Counsellors of South Africa

Unaffordable lifestyles and turning a blind eye to financial problems are all reasons debts spiral out of control. People with debt problems often feel powerless, ashamed and scared for the future. Then debt management services are useful for sorting out the paperwork of debt. Debt Counselling is a process for the restricting of your debt into one easy payment and a way to improve your credit score and clear your credit record. Here are Pay Plan Solutions which don’t just provide impartial debt advice and debt management solutions but also offer our clients on their journey to becoming debt free. We have expert debt knowledge and skills to provide reassurance and support to our clients at a difficult and stressful time. Debt management programs set up by credit counselors usually offer reduced payments, fees and interest rates to the client. And the credit counselor refers to the terms dictated by the creditors to determine the payments offered to consumers in a debt management plan.    

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