About Debt Counselling Cape Town

Are you heavily indebted and always find your monthly paycheck in overdraft? If you are from Cape Town, there are a number of agencies and government aids that can help you solve your debt problems and gain debt relief. Debt counselling Cape Town is easy to avail of.

The South African government has acknowledged the overwhelming national cases of individuals with debt problems and has taken action to help. In South Africa, all aspects of debt counselling (inlcusing the conduct of Debt Counsellors) is controlled by the National Credit regulator and the national Credit Act, No 34 of 2005, commonly referred to as “The Act”.

What is Debt Counselling?

Debt counselling is a process whereby consumers who are experiencing debt related problems can seek out help from a registered debt counselor. Through debt counselling, an individual can combat his or her mountain of credit issues with:

Advice with budgeting

This is an effort to reshape a person’s attitude towards spending and budgeting. This is done through working with the individual asses how he or she balances monthly income and expenditure. Aside from that, an individual is educated further in the financial aspect of life, money management and other necessary skills that will help him or her cope better with modern financial lifestyle.

Debt payment restructuring

A counselor can help out an individual craft a payment structuring that is manageable. This is the practical application that comes with financial education mentioned above, and of course, a practical solution to combat debt problems.

Negotiating with his/her credit providers on their behalf

When enrolled in debt counselling, an individual is given help in negotiations with the creditors. The Act also povides for the monitoring of a consumer’s payments while providing after-care services.

How To Seek For A Debt Counsellor?

Debt counselling must be undertaken by a properly registered debt counsellor. A Debt Counsellor is a person who:

a) Is registered with the National Credit Regulator (NCR) and;

b) Who assists consumers who are experiencing debt-related problems and are having difficulty making their current monthly payments by providing them with budget advice support and “mediation” with credit providers.

How does debt counselling work?

Debt counsellors can work independently or as part of an organisation. In terms of the Act, debt counsellors cannot be part of organisations that provide credit, debt collection agencies or credit bureaus.

Where do you find debt counsellors?

1. Any person who is over-indebted may approach a debt counsellor directly
2. A consumer may also be referred to a debt counsellor by his/her creditor/s or by the magistrate court.

The NCR keeps a list of registered debt counsellors which is available on the NCR website. One can also call the NCR directly to get a copy of its list of registered debt counsellors.

Wherever you are in South Africa, it is a comfort to know that there is a way out when you fell into a debt problem. There are a variety of options to keep debts manageable and then completely eradicated in order for you to start afresh.