Debt Counsellor

What does a debt counsellor actually do and how can debt counselling help you? We provide all the answers.

Debt Review Agreement

What is a Debt Review Agreement?
Before drawing up your debt review agreement, your debt counsellor will assess your financial affairs to determine whether or not you are over-indebted. If you can’t afford to service your debts, as your outgoing expenses exceed the income you make, this means that you are in a state of over-indebtedness.

At which point, your debt counsellor will inform your credit providers and the credit bureaus that you are under professional debt review, and that they are your official debt counsellor. Continue reading

Professional Debt Counselling Explained

Debt Counselling Explained

If you need debt counselling explained to you in a simple and understandable way, you’re certainly in the right place. In 2007, the National Credit Act came into effect and along with it, a new, improved rehabilitation process for over-indebtedness.

We refer to this process as professional debt counselling or debt review. Debt counselling was designed to protect consumers from predatory or reckless lenders, and to rehabilitate consumers back into the credit market. Continue reading

Loans, Loans, Loans for South Africa!

More and more South Africans are turning to loans in the face of continual petrol, electricity and food price hikes, which they simply cannot keep up with. According to a World Bank database report, 86% of South Africans took out loans last year, while the world standard is 40%. Consequently, South Africans can quite reasonably be referred to as the most prolific borrowers in the world!

Some of the other biggest borrowers in world include Iran at 80%, Kenya at 79%, Niger at 71%, Botswana at 69% and Zimbabwe at 62%. Interestingly, the tendency seems to be that of asking friends and family for loans more often than financial institutions and micro-lenders. Continue reading

A Debt Solutions Face-Off: Debt Mediation vs. Debt Counselling

A Conflict of Interest

When the National Credit Regulator realised that voluntary debt mediation (VDM) compromised consumers by undermining the National Credit Act and professional debt counselling, they amended the act to show that they were not in support of this debt solution.

The problem with VDM is that Credit Providers (CPs) offer this service as a debt solution to consumers who owe them money, which creates a conflict of interest. This means that the CP’s motivation for providing this service is open to corruption, as they could covertly manipulate the situation in favour of their own interests. Continue reading

Get Thee to a Debt Counsellor Today!

If you’re stuck in a debt spiral like South Africa’s 11+ million indebted consumers, maybe it’s time to join the  rapidly growing 14,000+ in-the-know individuals applying for debt review with a professional debt counsellor monthly in South Africa, according to DCASA.

These figures are set to increase, which is very heartening to observe, considering that 18 months ago, only 8,700 people were consulting a debt counsellor to apply for debt review per month.  This rising trend in responsible consumer behaviour certainly proves that the National Credit Act and its new amendments are eliciting the desired positive change, as intended by the National Credit Regulator. Continue reading

Petrol price drop

Fuel Prices May Have Dropped, But Has Your Debt?

A silver lining has finally haloed the obstinate dark cloud that unrelentingly casts doom and gloom over South Africa’s economy, when fuel prices fell by 93c a liter, on Tuesday 3 February 2015.

Similarly, diesel dropped by 9.9% and paraffin went down by R1.36. The Department of Energy attributed the drop in fuel prices to a decrease in the price of crude oil. However, you may want to hold off on breaking out your most expensive bottle of champagne, as analysts predict an upward price trend in fuel prices in the years to come. Continue reading