Are you feeling overwhelmed by debt? Struggling to keep up with monthly payments? Debt counselling is a good idea and could be the lifeline you need. This blog post will explain what debt counselling is, how it works, and how it can help you regain control of your finances. Let’s dive into the world of debt counselling in South Africa and discover how you can achieve financial stability and peace of mind.
First, debt counselling and debt review in South Africa, refers to the same process.
What is Debt Counselling?
Debt counselling meaning: Debt counselling, for it it to be legal, should be offered by a National Credit Regulator (NCR) registered debt counsellor and debt counselling company. It is a legal process designed to help over-indebted individuals.
The debt counselling process involves a qualified debt counsellor assessing your financial situation and negotiating with your creditors to create a manageable repayment plan. This process not only simplifies your debt repayments, and often reduces your monthly instalment, but also provides legal protection from creditors.
DEebt counsellor meaning: A NCR registered professional that is legally able to conduct and provide debt counselling services to South African consumers.
How Does Debt Counselling (debt review process) Work in South Africa?
Step 1: Assessment
Your debt counsellor will conduct a detailed assessment of your financial situation. This includes reviewing your income, expenses, and outstanding debts. The goal is to determine if you qualify for debt counselling and to create a realistic repayment plan.
Step 2: Application
If you qualify, your counsellor will help you complete the necessary paperwork to apply for debt counselling. This application is then submitted to the National Credit Regulator (NCR) and your creditors.
Step 3: Negotiation
Your debt counsellor will negotiate with your creditors on your behalf. This involves restructuring your debt, reducing interest rates, and extending repayment terms to make your monthly payments more affordable.
Step 4: Approval
Once an agreement is reached, the new repayment plan is submitted to a magistrate’s court for approval. Once approved, there is now a court order in place and the plan becomes legally binding. You can then start paying off your debt by making one monthly payment for all your debt.
Step 5: Payment Distribution
You make a single monthly repayment to a Payment Distribution Agency (PDA). The PDA then distributes the funds to your creditors according to the terms of the repayment plan.
Step 6: Monitoring and Support
Your debt counsellor will monitor your progress and provide ongoing support. If your financial situation changes, the repayment plan can be adjusted to ensure you stay on track.
Step 7: Debt Review Clearance Certificate
Once you have settled all your debt according to the repayment plan, you will be issued with a debt review clearance certificate. The credit bureaus will then update your credit record and you will be free to start applying for credit again!
Why Choose Meerkat for Debt Counselling (Debt review)?
At Meerkat, we are committed to helping you achieve financial freedom. Our team provides personalised, professional support throughout your debt counselling journey. Here’s why Meerkat is the right choice for you:
- Proven Track Record Meerkat has a proven track record of helping clients achieve financial freedom. We've been voted as one of The Top 5 National Debt Counsellors.
2. We have a 4.5/5 rating on Hellopeter. Our clients are happy with our services too.
4. Confidential and Compassionate Service We treat your financial information with the utmost confidentiality and handle your case with compassion and respect. You can trust us to support you without judgment.
5. Comprehensive Financial Solutions In addition to debt counselling, we offer a range of financial services, including budgeting tools, financial education, and savings plans. Our goal is to help you build a solid financial foundation for the future.
Watch this video with our Founder & CEO, David O'Brien as he breaks down the process.
Take the First Step Towards Financial Freedom
If you’re ready to take control of your finances and eliminate the stress of debt, debt counselling is the solution you need. At Meerkat, we make the process simple and supportive, guiding you every step of the way.
Ready to Get Started?
Don’t wait another day to regain control of your finances. Contact Meerkat today and take the first step towards a debt-free future. Fill out our easy online form to get started, and one of our expert consultants will reach out to you to discuss your options.
By choosing debt counselling with Meerkat, you’re taking a proactive step towards financial stability and peace of mind. Let us help you transform your financial future and achieve the freedom you deserve.
Debt counselling is more than just a way to manage debt—it’s a path to a brighter financial future. Take action now, and let Meerkat guide you to financial freedom. Your journey starts with a single step—reach out to us today and reclaim your financial peace of mind.
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