What is a Debt Counsellor?
A Debt Counsellor is defined in terms of the National Credit Act regulations as a natural person who is registered by the National Credit Regulator (NCR) in terms of section 44 of the Act, offering a service of debt counselling. The National Credit Act (NCA) introduced debt counselling as a debt relief measure for over-indebted consumers. This is a statutory process that is only conducted by registered NCR Debt Counsellors. NCR-registered Debt Counsellors are responsible for assisting over-indebted individuals through the debt counselling or debt view process that is detailed in Section 86 of the Act.
What is the Role of a Debt Counsellor?
NCR-registered debt counsellors are trained to provide advice and restructuring plans to individuals struggling with debt. Their primary role is to evaluate your financial situation comprehensively and develop a realistic repayment plan in line with the National Credit Act (NCA). By negotiating with creditors, debt counsellors work to reduce payments and interest rates, ultimately striving to prevent the repossession of assets and legal action against debtors.
The Act envisages NCR Debt Counsellors as persons who are registered by the National Credit Regulator (NCR) and meet the minimum requirements stipulated in the Act. NCR Debt Counsellors must satisfy any prescribed education (Grade 12 certificate and successful completion of debt counselling course approved by the NCR) and experience or competency requirements (two years' working experience).
An individual may not offer or engage in debt counselling services unless registered under Section 44 (2) of the NCA. Debt Sage boasts highly trained and educated, NCR-registered debt counsellors who have been in the debt counselling industry since its inception. Our dedicated team is passionate about helping consumers become debt-free.
What is the Process to Apply for Debt Counselling?
The journey towards financial freedom begins with a counselling session. Here, a debt counsellor will assess your monthly income, living expenses, and debt obligations. Based on this assessment, they will determine if you are over-indebted and eligible for debt counselling.
Once you are deemed eligible, the counsellor will inform all creditors and credit bureaus that you are under debt review. This step is crucial as it protects you from legal action for a specified period while the debt repayment plan is being devised.
The counsellor then designs a restructured payment plan and negotiates with creditors to accept reduced payments. This plan is presented to all parties and, once agreed upon, is made an order of the court or a legally binding agreement.
What are the Benefits of Using an NCR-registered Debt Counsellor?
- Expert Guidance: NCR debt counsellors bring a wealth of experience and knowledge to help you navigate through debt-related challenges.
- Legal Protection: The debt review process prevents creditors from hassling you for payment or repossessing assets during the negotiation period.
- Structured Repayment Plan: Tailored plans ensure that you can meet your living expenses while paying off debt.
- Single Monthly Payment: Debt counsellors consolidate your debts into one reduced monthly payment, making it easier to manage your finances.
- Avoid Blacklisting: By adhering to the debt review process, you can avoid being blacklisted, which can have long-term consequences for your creditworthiness.
How Do You Choose a Debt Counsellor?
Selecting an NCR-registered debt counsellor is vital. Ensure they have a good track record, transparent fee structure, and positive testimonials. Check their registration status to verify their credibility. NCR Debt Counsellors are expected to exercise their function independently.
How Debt Sage can Help
If you're feeling weighed down by debt, consider reaching out to Debt Sage's NCR-registered debt counsellors to explore your options for financial stability and recovery. Remember, the journey towards a debt-free life starts with a step towards informed decisions and professional guidance. NCR debt counsellors could be the partners you need to turn over a new leaf in your financial story. You can rest assured that our debt counselling service is confidential, professional, and of the highest quality. It is this experience, coupled with our dedication to giving you a compassionate, complete and competent service that sets us apart.