Why Debt Counseling Is Perfect For You.

Why debt counseling could be the smart choice.

Debt counselling, formerly known as debt review, was introduced by the National Credit Act (NCA) in 2007 to help over-indebted consumers with their debt.

Your debt counselor

A registered debt counselor first meets a consumer who owes their creditors a significant amount on a credit agreement. Your debt counselor meets you face-to-face or over a telephone call. During this time, they’ll get information on your income, outstanding debts, and other details. They use this information to negotiate an affordable repayment plan that is unlikely to lead to further indebtedness.

The aim of the meeting is for the counselor and the consumer to agree on how much can be repaid and at what pace.

Restructuring your debt

With debt counseling, you can legally restructure your credit card repayments. This is done through a repayment plan that is agreed upon by your creditors and you can lower the amount you owe them a little at a time.

Struggling to make monthly debt repayments?

Debt counseling is a legal process available to consumers to assist you in the case that you may ever become over-indebted and find yourself unable to make your monthly debt repayments or pay for your living expenses.

If you find that the amounts listed as debt exceed those of your monthly income, you might be over-indebted. If you’re like most of us, you may find it incredibly challenging to juggle all of your recurring living expenses – and it might be even more difficult to stay up to date with your bills. It’s not uncommon for people to miss their payments and run into financial trouble as a result.

Can't keep up with all your debt accounts?

Finance is complicated and it’s easy to make a mistake.; Sometimes we fall behind on our payments, or fumble over important details like staying within our credit limit, even when we don’t have enough money to cover our basic essentials, such as rent and buying food.

Manage your debt

Debt counseling can help you manage your overdue bills easily. With this process, you only have to pay one reduced monthly bill that's much easier to take care of. Your creditors are paid quickly thanks to the intervention of your debt counselor who manages the process by leveraging an accredited Payment Distribution Agency (PDA). This protects your money at all times because it means their roles become more focused on paying creditors than spending time making sure you still have the cash on hand.

For more information on debt counseling, get in touch with the Credit Health team.