What is debt counselling?
Debt counselling is a process that involves a sound debt management plan.
Not everyone is eligible to apply. To qualify, you’ll need to be classified as over-indebted – unable to pay off your debts on time.
When undergoing debt counselling, creditors may not issue further loans to you. The only loan that may be issued is a debt consolidation loan. You’ll be restricted from taking out further loans until you are issued a debt clearance certificate by your debt counsellor.
Key Features of debt counselling services:
- Free Advice
- Quick and Easy
- No Interviews in Person
- In complete confidence
- Debt counsellors will analyse your finances, looking at income and expenditure and then come up with a recommended solution to deal with your debt.
- Better to contact debt counsellors directly
Free debt counselling services are not easy to come by, but they are available.
Debt Therapy is an institution that offers government-regulated debt counselling services. As the first company to offer debt counselling services in South Africa, Debt Therapy has extensive experience in this field.
The institution is registered with the National Credit Regulator and charges no application fee.
Benefits of debt counselling:
- It’s the quickest way to a clean credit record. As soon as the credit bureau has received your debt clearance certificate, your negative listings will be removed.
- You won’t have to worry about creditors harassing you.
- You get to pay one monthly instalment, instead of having to keep up with multiple repayments.
- If you do get free debt counselling services, you’ll have financial freedom once your debts are paid off.
- You’ll be protected from the potential loss of
- You’ll be provided with tools for how to manage your debt better.
- The majority of consumers are able to get their profiles rehabilitated within 60 months and become debt free.