Debt Counselling Clients

Most Debt Counselling Clients Earn Between R5k and R20k

Middle income earners make up the majority of all Debt Counselling clients in South Africa currently.

According to Paul Slot, president of the Debt Counselling Association Of SA (DCASA), consumers earning between R5 000 and R20 000 per month make up 74% of all clients who have applied for Debt review.

Slot believes the number of clients applying for debt counseling will continue to increase as most ‘have already borrowed too much and this mean too much of their income is committed to debt repayments.

Unless consumers are able to increase their monthly incomes in the near future, or somehow reduce their living costs it is expected the petrol price hikes, food price increases and future interest rate hikes will have an very large impact on most household budgets.

Debt-Counselling

Although there are less than 800 registered debt counsellors currently active in South Africa, the DCSA believe that there is no shortage of help available to highly indebted clients.

“We do not believe that there is a shortage of DCs [debt counselors] and many DCs are under utilised at present. Currently about 6,000 consumers enter the process and existing DCs can handle this capacity,” he said.

One factor that assisted in this process, Slot said, was the NCR Task Team agreement where standard process and forms were agreed to.

What is Debt Counselling?

What is Debt Counselling?

What is Debt Counselling and how does it really help you manage your finances and get out of debt?

Debt Counselling is a process that involves educating and assisting over-indebted consumers to restructure their loans into more manageable repayment plans.

Important Note:

After being referred to, or approaching, a Debt Counsellor your monthly repayment obligations will not stop. Instead, your repayments will be renegotiated to a level that is more manageable for you and this will allow you to escape the debt trap.

Debt Counsellors are registered with the National Credit Regulator (NCR) and act under the agreed guidelines by the Debt Counsellors’ Association of South Africa (DCASA), in a bid to curb the exploitation of consumers and reckless lending.

After an interview and assessment has been completed, your counsellor will approach the companies your owe money to and propose a new repayment plan. If this new plan is rejected, he/she is then able to enforce it by submitting a request to the courts for your behalf. Your counsellor is also able to legally protect your assets from bank repossession.

What is Debt Counselling – The Costs

What is Debt Counselling – The Costs

Note there are certain costs involved in the debt counselling process that you will need to pay. These fees are strictly regulated and your advisor must work within those guidelines.

Click Here For More Info: Debt Counselling – What Are The Costs