Five important tips for choosing the right Debt Counsellor
Debt Counselling is a debt relief option available to all South Africans under the National Credit Act. If you are struggling to pay your creditors — such as clothing accounts, credit cards, home loans, or car loans — debt counselling can be extremely beneficial.
How does Debt Counselling work?
A registered Debt Counsellor with the National Credit Regulator (NCR) can negotiate with your credit providers on your behalf. Debt Counsellors can help secure reduced monthly instalments, lower interest rates, and help to restructure your debts.
How will a Debt Counsellor be able to help you?
A Debt Counsellor will negotiate a restructured payment plan with your creditors on your behalf and obtain a court order confirming the new repayment plan.
This will ensure that your debt is more manageable and you can meet your monthly financial obligations.
How to choose the right Debt Counsellor?
The Debt Counsellor you choose to represent you is vital for a successful debt review process.
Here are 5 tips from the Debt Counsellors Association of South Africa to help you make an informed decision:
1. Make sure the Debt Counsellor you have chosen is registered
Only registered Debt Counsellors are legally allowed to provide debt review services in South Africa. You can check if they are registered by getting their NCRDC Number and then either checking it on the National Credit Regulator (NCR) website or by calling them on 011 554 2700.
2. Experience and reputation is important
Experienced counsellors are better equipped to negotiate with creditors and handle complex cases; they have been in the industry for a long time and know the process well.
How to find an experienced counsellor:
- Look for reviews and testimonials online
- Check their LinkedIn profiles or websites to see how long they have been in the industry
- Ask family and friends for referrals
3. Do they protect your financial information?
Another very important question to ask before signing up with a Debt Counsellor is how they protect your personal and financial data. Make sure they comply with the policies of the Protection of Personal Information Act (POPIA).
Debt Freeze fully complies with POPIA policies. We also use an industry-leading software system that complies with all data protection requirements.
4. Be careful of scammers
Unqualified counsellors or scammers can worsen your financial situation. If a Debt Counsellor promises to clear your debt or improve your credit score immediately, walk away.
It is not uncommon for Debt Counsellors to ask for upfront payments. At Debt Freeze we do request clients to accept a DebiCheck before sending out any communication on your behalf to your creditors.