What is Debt Counselling
A closer look at debt counselling
Debt counselling is the process whereby you hand over all of your financial information to a qualified, accredited and professional debt counselor. The purpose of debt counselling is exactly that: It’s aimed at putting all of your financial information under review, in order to restructure your debt in such a way that it becomes manageable once more.
Major benefits of debt counselling
The primary benefit of placing yourself under debt counselling is a legal one. Within 5 days after you have applied for debt review, no legal action from creditors can be taken against you. The secondary benefit, but perhaps equally important, is that our debt counselors have the ability to negotiate reduced payments with your creditors.
The debt review process is simple.
Here is an overview of what you can expect:
Before debt review
- Once you have made the choice to become debt free, you can contact us to receive an application form for being placed under debt review. The 1st step towards financial independence is ultimately as simple as making the choice.
- Our debt counselors will advise you of any minimal fees that may be anticipated.
- Hereafter you will complete the debt review application form which is also referred to as a ‘Form 16’.
- Send us the completed application form including all supporting documentation pertaining to your finances. Our debt counselors will explain to you what kind of information is considered as supporting documentation.
- We will capture your information and activate your debt review protection immediately.
During debt review
- A specific debt counselor will be allocated to your file and be your dedicated counsellor for the remainder of the process.
- Creditors have 5 working days to confirm that your details are correct. If we do not hear back from them within 5 days a reminder is issues to them, after which they have 10 days for final response.
- Hereafter your debt consolidation commences and we take the necessary action to get you out of debt.
- You will receive a debt restructuring proposal from us that will be designed for your unique particular financial situation.
- Once you have accepted the proposal we will send this to your creditors and the final proposal will be given to the Payment Distribution Agency.
- Your debt counselor will be able to negotiate your repayments and reduce your debt payments by as much as 30% – 40%
After debt review
Once your finances have stabilised, the debt counselling process will come to an end. However we do recommend that you touch base with us from time to time to ensure that you keep living within your means. From this point of view, we can build a lasting relationship that can consist out of adhoc financial advice.
Call us today for a free consultation. Do not hesitate to ask us any questions about your current financial situation. Our counsellors are experts and have assisted many people to become entirely debt free.
Read more about the debt counselling process here.
Other 3rd party information on what is debt counselling click here.