Many people have heard of the term debt counselling, but don’t really know what it is or means.
According to the National Credit Regulator (NCR), debt counselling is one of the debt-relief measures available in South Africa and provided for in the National Credit Act.
This process is intended to assist over-indebted consumers struggling with debt through budget advice, negotiation with credit providers for reduced payments, and the restructuring of debts.
In a nutshell – if you are not coping with your debt and you are found to be over-indebted, a debt counsellor can liaise with your credit providers to lower your interest rates and subsequently your monthly instalments, and then make these reduced payments an order in a court of law.
This will give you more money to live on. Now, put like that, everything should be hunky-dory and everyone who can’t cope with their debt should be under debt review with a NCR-registered debt counsellor.
Unfortunately, like with every other industry, there are good service providers and terrible service providers.
There are also consumers who do what they are supposed to be doing for the process to be successful, and others who don’t.
So depending on your personal experience, debt counselling can either be a saviour or a scam.
DEBT REVIEW AWARDS
For me, it’s very simple. The quality and integrity of your debt counsellor will make or break your debt-review experience.
So I am very happy when every year, the Debt Review Awards come around.
Zak King, founder of these awards, is very proud of the way it has grown. He says: “Over the last nine years, hard work and excellence in the field of debt review has been recognised through the annual Debt Review Awards.
“There are plenty of hard-working individuals, and entire departments, who help consumers through their debt-review journey.
“The awards are a way for the industry to show appreciation for all that hard work.”
King adds: “Each year, recognition is given to these hard-working people, credit providers and DC practices. The awards combine a pat on the back and bragging rights for those who are putting their heart and soul into making the industry better for consumers.”
On Friday, the pre-awards show happens from 12pm to 2.30pm, with the actual awards taking place from 3pm to 4pm.
You can watch it free (excluding your data costs) on the following platforms:
Visit www.debtreviewawards.co.za and you will be able to watch via the website.
Visit www.debtfreedigi.co.za and you will be able to watch via the website.
Watch it on YouTube. Search for Debt Review Awards or Debt Review Awards 2022 and you will find the show, or you can already go over to the page where it will be streamed and subscribe for notifications so long
All social media platforms such as Facebook and Twitter.
We will also be posting results, photos and links via social media on Facebook, LinkedIn and Instagram. You can search #debtreviewawards2022 for the latest results.
MISINFORMATION AND SCAMMERS
There are countless scammers online who will promise to give you a loan or get your debt written off IF you pay them an up-front fee. Sadly, it’s the consumers who suffer.
Many times companies will run ads on social media and make promises with regards to getting you on or off debt review, without telling you the truth of the process.
They literally lie and make promises that they can’t even legally deliver on. Be vigilant.
WORK WELL OR GO WRONG
Debt review is a process that can either work very well or go horrifically wrong. I see that from the huge number of enquiries I get.
I have worked with many debt counselling companies. Some are great and really have the consumers’ best interests at heart.
But others are fly-by-night chancers and consumers could be terribly disadvantaged.
Debt review can and does work, but it takes a trustworthy, knowledgeable debt counsellor and committed consumer working towards a common goal of getting you debt free.
I would personally suggest that consumers make use of debt counsellors who use the Debt Counselling Rules Set (DCRS) which allows unsecured debt to be repaid as quickly as possible, and allows creditors certainty about the timeline of the process.
It also ensures that consumers repay their debt as quickly as possible and will also ensure acceptance of restructured debt proposals by creditors.
MY SUGGESTIONS
Debt Counselling can and does work when done correctly, but isn’t a “quick fix” for your skuld.
If you are not committed to seeing the process through to the end and still want to have access to credit, then rather consider another debt-relief option.
That is your right as a consumer.
Don’t sign up for debt review until you are 100% certain it’s what you want.
Ask all the questions you need to and be sure you know the fee structure up front.
Be aware that your name will be flagged at credit bureaus while you are under debt review.
I know the Debt Review Awards have their own Top 50 Debt Counsellors in various categories, but here – in no particular order – are the five companies I would personally recommend if you want to consider debt counselling.
Just for the record: I am not getting paid or remunerated by any of them in any way.
– National Debt Advisors
– Credit Matters
– Debt Busters
– ezDebt Solutions
– Consumer Debt Support
TIPS
Only make use of registered debt counsellors. You can confirm their NCR registration here
https://www.ncr.org.za/register_of_registrants/registered_dc.php?page=43
Get more information on debt review on www.debtfreedigi.co.za
Also visit the website of the National Debt Counselling Association www.ndca.org.za
Report bad service from a debt counsellor to the NCR via www.ncr.org.za
If a debt counsellor “disappears with your money”, lay a criminal charge and have them arrested. The industry doesn’t need these types of people.
This article is by far not all the information on debt counselling – do your homework.