Archive for the ‘Debt Counseling’ Category

According to the National Credit Regulator, there are more than 17 million consumers in South Africa who are in arrear with their debt obligations.

This is a staggering statistic and indicative of over indebted consumers being in urgent need of debt relief.

The National Credit Act provides for a process in terms whereof over-indebted consumers can apply to a debt counsellor for debt relief (the debt review process).

A debt counsellor will consider, evaluate and review an over-indebted consumer’s financial obligations and develop a payment plan in terms whereof such consumer’s debt obligations are re-structured and reduced to affordable amounts. Thereafter a debt counsellor will cause the payment plan he would have developed, to be converted to an order of court and to which all the consumer’s creditors will be bound. In short, a consumer will, with due regard to his income and required living expenses, only pay his creditors what he realistically can afford to pay.