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Debt Counselling 101

Debt Counselling is a specialised statutory process of working with a registered Debt Counsellor to restructure monthly debt repayments to an amount that is reasonable for both the Consumers and Credit Providers.

In short, we negotiate reduced instalments and interest rates with your Creditors enabling you to pay your debt AND service your necessary monthly household expenses.

The benefits of Debt Counselling can be summarized as follows:

  • A registered Debt Counsellor communicates with your Creditors on your behalf – no more harassment / being sent from pillar to post / speaking to people who just don’t understand;
  • In most cases the Creditors agree to lower their interest rates and reduce their fees;
  • The agreements are made an order of court, ensuring that both parties are protected;
  • As long as the Consumer makes payments in line with the Order, the Creditor may not continue with normal collection procedures. 

The calculation the Debt Counsellor will do, is in some ways similar do that done by the Creditor before granting your credit application. Your monthly household expenditure is deducted from your monthly income which leaves you with a certain amount known as a distributable amount that can be allocated towards the monthly instalments on your credit agreements.

Your Debt Counsellor will calculate a repayment proposal with the help of a system specifically designed for the process and inform your Creditors of this amount. 

The allocated Debt Counsellor will negotiate the best possible terms on your behalf with your Creditors.

To learn whether Debt Counselling is the correct solution for your specific financial circumstances, contact our offices to arrange a consultation with a registered Debt Counsellor.

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