Author Box
Articles Categories
All Categories
Articles Resources

How Does Debt Counseling Work In South Africa

July 06, 2012 | Comments: 0 | Views: 237

Debt counseling was introduced in 2007 under the National Credit Act of South Africa in order to help consumers who are struggling financially. People who are over-indebted could apply for debt counseling and be free from debt within a short span of five years.

When South African consumers opt for debt counseling under the National Credit Act, they are immediately protected from any kind of action taken against them by creditors. They would be protected from repossession of their property or assets once the debt counseling process is underway. This is one of the greatest advantages under the provision of the Act.

Debt counselors would be appointed for each consumer to handle and represent their case. The counselors would first review the case and contact all the creditors of the consumer and negotiate with them for a new and revised repayment plan which takes into account, the current financial capacity of the consumer. Once the plan is approved, the consumer would have to pay only a single consolidated payment every month to the Payment Distribution Agency or PDA which would then disburse the amount to the different creditors. The revised monthly payment would be low enough for the consumer to afford, after making all their other payments for utilities, groceries and all other essentials.

One of the primary reasons for people defaulting on their payments is not having sufficient funds after taking care of all their other essential expenses. With the cost of living on the rise, and salaries not keeping pace with the rise in living standards, people find it difficult to make ends meet. Fortunately with debt counseling, consumers would be able to pay their periodic installments regularly without defaulting, since the monthly payment would now be affordable. This would go a long way in turning their financial situation around and helping them reach the goal of paying off all their dues.

Anyone who is over-indebted can apply for debt counseling. Of course, they need to have a regular income and have a sufficient sum left over after taking care of their essential expenses. They can then use the left over sum to pay their outstanding dues. Most creditors would also favor this arrangement as they would finally be able to recover their payments periodically with having to go after their debtors. Therefore, it is a win-win situation for both the debtor and the creditor. The economy of the nation is also bound to benefit as more financially well-off people would contribute positively to the growth of the economy.

For more information on debt counselling, please visit http://www.debtcounsellingonline.co.za/

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Debt Counseling

,

Debt Counseling Process

,

Debt Counselors

,

National Credit Act

,

Debt Review

,

Debt Help

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 560

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 303

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 288

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 300

If you have a bad credit score, it is certainly not good but you can rectify the situation. If you want to remove bad credit from your records, you should take a few steps.

By: Raman Kuppuswamyl Finance > Debt Reliefl July 11, 2012 lViews: 198

Becoming debt free in as little as one year is perfectly possible. Of course, this usually depends on exactly how large the total amount owed is, but in most cases, careful budgeting and

By: Frank S Walterl Finance > Debt Reliefl July 09, 2012 lViews: 155

Debt relief is the concept of forgiving someone for the payment of debts. A debt relief order is a kind of a document for the debtor to get a stand against the creditors, so he gets time for the

By: Hammad Akhtarl Finance > Debt Reliefl July 06, 2012 lViews: 170

If you are deep in debt and need help to get out of your financial crisis, you can consider applying for debt review. But before you do, you need to understand that your dire necessity of funds is

By: Colin W Brazendalel Finance > Debt Reliefl July 06, 2012 lViews: 158

Regardless of how deep you currently are in debt, becoming debt free for life is just a matter of changing some old habits. All it takes is discipline and proper planning, even after years of

By: Frank S Walterl Finance > Debt Reliefl July 05, 2012 lViews: 188

Bankruptcy is the state of people when their financial condition is insolvent and they are not left with any money. They have to bear with the outstanding debt issues, pay huge amounts of interest on

By: Najeen Zahoorl Finance > Debt Reliefl July 03, 2012 lViews: 157

If you are deep in debt and need help to get out of your financial crisis, you can consider applying for debt review. But before you do, you need to understand that your dire necessity of funds is

By: Colin W Brazendalel Finance > Debt Reliefl July 06, 2012 lViews: 158

If you are struggling under a heavy burden of debt, you already know how difficult life could be. The debt review process can free you from all your financial woes and help you live a life of freedom

By: Colin W Brazendalel Finance > Debt Managementl July 03, 2012 lViews: 282

Most people who are deep in debt think that they need some kind of monetary assistance to get out of their economic crisis. Although financial assistance might help for the time being, they would not

By: Colin W Brazendalel Finance > Debt Managementl July 03, 2012 lViews: 197

Most often, people get into debt in progressive stages. They start small and then get deeper into debt over a period of time. Many people who are in deep debt would need professional help to set

By: Colin W Brazendalel Finance > Debt Managementl July 03, 2012 lViews: 179

The National Credit Regulator of South Africa was established in 2005 to regulate the credit industry in the country. The NCR plays a vital role in the credit industry by helping individuals in need

By: Colin W Brazendalel Finance > Debt Reliefl June 28, 2012 lViews: 208

People get into debt due to various different reasons. Only a few of those reasons are normally unavoidable, while the majority of them are quite easily preventable. Almost anyone could be affected

By: Colin W Brazendalel Finance > Debt Reliefl June 28, 2012 lViews: 157

Discuss this Article

comments powered by Disqus