Do You Qualify For Debt Counselling

If you are currently wanting to get out of debt and not sure how to do this post should help.

The main problem I find in my daily work is that the vast majority of people want to get out of debt but are not actually sure of the extent of their debt problems or if they actually are over indebted or just living beyond their means.

How To Get Out Of Debt

In order to make informed and educated decision about how to get out of debt, please read the below actions that can be followed for a debt free tomorrow.

The first thing you should do if you have decided to get out of debt, is get statements of all your accounts, e.g. credit cards, loans, bonds, vehicle statements etc. Take all these statement and write down the minimum payments you should be making in order service account and get out of debt.

The second thing you should do to get out of debt, is to see if this amount is actually available after paying for all your fair monthly living expenditure, these are things like groceries, travel, school fees, rent etc. So add up all your living expenses and see what you are left with after paying these. (Net salary – living expenditure) = X. See if this amount X is enough to pay the minimum amount towards your debt monthly. If it is not then you are over indebted and should seek the advice of a qualified debt counsellor who is registered with the NCR to get out of debt.
How We Will Help You Get Out Of Debt

A debt counsellor will assist you in order to reduce your monthly payments towards your debt so that you can not only get out of debt but also survive and afford to service your debt payments monthly.

Diverse Debt Counsellors are qualified professional debt counsellors who will help you get out of debt in the following ways.

1) Re-negotiate payment amounts with your credit providers to more affordable amounts.

2) Where possible try reduce interest rates should they be excessive.

3) Give you an exact payment proposal showing the period of time it will take to settle all your debts and the amounts to be paid to each credit provider so you can get out of debt.

4) Offer support and advice on how to live a debt free life and how to avoid debt burdens later on in life.

If you are currently struggling to get out of debt, and your are not sure how to deal with it, contact a debt counsellor today for the professional advice you have been looking for.

If you really want to get out of debt, please ensure the debt counsellor you choose follows the below NCR guidelines as there are many fly-by-night firms claiming to be debt counsellors and have so called get out of debt schemes.

1) Ensure the debt counsellor has a valid NCR registration certificate. Please check on the ncr website on www.ncr.org.za or phone 0860 627 627 for verification.

2) Please ensure the debt counsellor uses a registered (PDA) payment distribution agent. No debt counsellor should ever request you to pay money into any of his/her business accounts even his/her fees should be paid to the PDA.

3) Ensure the debt counsellor charges fees within the NCR guidelines as many debt counsellors are charging high fees upfront which is not correct and which meansd you will take a long time to get out of debt.

4) If you do not feel comfortable with the debt counsellor rather look for somebody you can trust and somebody that can answer your questions without hesitation and uncertainty. You need to feel comfortable with the person who is tasked with the position of responsibility of sorting out your debt problems.

5) Ask plenty of questions and understand fully what you are entering into. And how this impacts on your current ability to use credit.

If you would like to check any details or information a debt counsellor gives you feel free to check on the NCR website or phone the NCR in order to ensure the advice you are given is the professional advice you deserve.

I hope this allows you to make the decision of whether or not you require the services of a debt counsellor to get out of debt, a bit easier and the choices you make after debt counselling to be easier ones with the added knowledge and know how you have acquired in reading this article.

All the best in your journey to get out of debt!

Yours in Debt Counselling,

Trevor Armfield (For help with debt please call my office: 031 827 5906)

Professional Debt Counsellor, Registration Number: NCRDC1036

How To Avoid Over Indebtedness

Don’t be too proud to declare you have a crisis. The longer you wait the worse the problem will get. Take action!
Interest is a bottomless pit that will drag you deeper and deeper into debt. Make sure you study the fine print and total costs when taking out loans and/or Installment sale agreements. If you have any extra cash, pay it into the highest interest bearing credit facilities you have. Do not buy luxury things using credit facilities. If you cannot pay for it,then don’t buy it. This simple philosophy can change your financial future and well being tremendously. Draw up a financial statement so you can see and analyse where your money goes. You cannot fly an aeroplane without controls the same as you cannot make financial decisions without a budget. Saving for emergencies is one of the most important things a person can do, I know sometimes this is not easy as every cent is used for survival. But every endeavor needs to be made to save even a small portion of your income as if emergencies happen then funds are available. Do not buy brand names, they are more costly more often than not for the simple fact that you pay for the name. Look for alternatives if possible. Shop around, do not take the first estimate as the best price. For example, get comparisons quotes for your vehicle repairs etc. Do not try keep up with your friends, neighbours etc. Trying to compete and stay abreast with technology and fashion etc will only place you in a difficult position. Expensive cars etc are not a prerequisite they are a WANT. Always ask yourself this question, do I need this item, or do I simply want this item?

Call Diverse Debt Counsellors in Durban (031 827 5906) for Help Today!

Tips For Over Indebted Consumers Part 2

Don’t be too proud to declare you have a crisis. The longer you wait the worse the problem will get. Take action!
Interest is a bottomless pit that will drag you deeper and deeper into debt. Make sure you study the fine print and total costs when taking out loans and/or Installment sale agreements. If you have any extra cash, pay it into the highest interest bearing credit facilities you have. Do not buy luxury things using credit facilities. If you cannot pay for it,then don’t buy it. This simple philosophy can change your financial future and well being tremendously. Draw up a financial statement so you can see and analyse where your money goes. You cannot fly an aeroplane without controls the same as you cannot make financial decisions without a budget. Saving for emergencies is one of the most important things a person can do, I know sometimes this is not easy as every cent is used for survival. But every endeavor needs to be made to save even a small portion of your income as if emergencies happen then funds are available. Do not buy brand names, they are more costly more often than not for the simple fact that you pay for the name. Look for alternatives if possible. Shop around, do not take the first estimate as the best price. For example, get comparisons quotes for your vehicle repairs etc. Do not try keep up with your friends, neighbours etc. Trying to compete and stay abreast with technology and fashion etc will only place you in a difficult position. Expensive cars etc are not a prerequisite they are a WANT. Always ask yourself this question, do I need this item, or do I simply want this item?

Getting Rid Of Debt | What Happens If You Don’t Pay Your Debt

As a debt counsellor I encounter many different approaches people try when they are over in-debted. One of the most asked questions I get is what will they do if I simply do not pay my debt.

Below is a brief description of the steps the credit providers will take

Getting Rid Of Debt – Step One

The credit provider will send out a section 129 letter via registered post to your last know address. This letter tells you that you should settle the amount owed within 10 business days or the credit provider will proceed to enforce the agreement by means of legal action. The letter also states that you should go and see a debt counsellor within this period if you so wish.

Getting Rid Of Debt – Step Two

If you choose to ignore the section 129 notice the credit provider will issue a summons which will be delivered  by the sheriff of the court. This summons will give you a set period in which to notify the handling attorneys of your intention to defend the matter. If you do not notify the attorneys or appear in court the attorneys will get a default judgment against you. This default judgement will mean that the creditor can now take one of the following approaches

Getting Rid Of Debt – Step Three

First approach
The attorneys can now apply for an emoluments attachment order (more commonly  known as the garnishee order), this will mean that the attorneys will decide on an amount and they will apply to the court to have this amount deducted directly from your pay before you even receive your remuneration. This is generally not based on your actual living expenses and can cause huge problems in a consumers life as he/she might not be able to survive should the amount be taken and secondly the client might now not be able to pay his/her other accounts leading to legal action from the remaining credit providers
Second Approach
The credit provider can apply for your assets to be attached. The sheriff of the court will come and write up an inventory of your assets eg, furniture, vehicles, houses etc. he will then take this inventory back to the attorneys handling  the case, the attorneys will decide weather the estimated value of the assets is worth them taking the assets. The assets will then be sold on auction. The proceeds of the auction will offset the amount you owe. If there is a shortfall you are still liable for this.
Third approach
If the attorneys do not know where you work and you have no assets worth taking they will call you to appear in a section 65 enquiry, this is an enquiry called for you to appear before a magistrate and prove all your income and expenditure so it can be decided what you can afford to pay towards the amount owed. This is the only time you can be arrested for debt, If you ignore the summons to appear you can be arrested to appear before the court for this enquiry.

Getting Rid Of Debt

The above is just a short description of options the credit providers have available to them. If getting rid of debtis you wish and you are falling behind on your accounts please do not let it get to the above stages, taking a pro active approach is a much better idea.

In our next blog post, we will be going through the dirty tricks credit providers use against you.

Get Rid Of Your Debt With The Help Of An Expert Debt Counsellor Today! Call 0314624308 or 0318275906

Debt Counselling Explained

Debt Counselling is a process which became law back in 2006. The Department of Trade & Industry conducted extensive research to determine the causes of over indebtedness. Soon after this, the new National Credit Act (NCA) was introduced. The National Credit Regulator became responsible to regulate the entire credit landscape (This included for example Register Credit Bureau’s, Credit Providers, Debt Counsellors) One of the most important objectives of the NCA was to ensure that all role-players would conform to, and comply with the NCA. Debt review is part of the NCA and section 86 of the NCA allows for a consumer with credit agreements with registered credit providers to apply for the restructuring of his/her accounts in an effort to alleviate the danger of having an impaired record, repossession of assets and still ensuring that debt obligation is fulfilled by the consumer.

Once a consumer has consulted with a Debt Counsellor (DC) it is the duty of the DC to make a determination by the DC whether or not the consumer is over indebted.
The over indebted consumer can then formally apply for debt counselling by completing application form through the DC. The DC will conduct an assessment of the debtors financial position (including an income and expenditure assessment) The DC will then draw up a proposal which will include new repayment instalments and terms to the consumer’s creditors. The DC will then refer the debt review application to a Magistrate to grant a debt review order. Should the court be satisfied with the proposal & negotiations, it will grant an order and formal restructuring of all the consumers accounts will be finalised.

The documents required for a debt review application are normally an ID Copy, 2 or 3 months bank statement, copy of credit report (which the DC will usually help the debtor obtain) and Proof of Income (e.g. Pay slips)

Consumers must be aware that the moment they start missing or skipping their account payments, they should immediately consult with a DC to & consider applying for Debt Review to safeguard their assets.

For Expert Debt Counselling Help, Call Us on 031 462 4308 Today!

Go Top