Debt Counselling Cape Town

It is not uncommon knowledge that the current global economy is experiencing rough times, unless you are living under a rock. At some point you may have felt it too. Prices too high, your grocery bags aren’t as heavy as before when you get home. Or perhaps you’ve lost a job and would need to tighten the belt before you find another one. Worse case scenario if you have loans to juggle. Debt counselling Cape Town is an option for those who are struggling with debts.

The Statistics

In 2009 alone, nearly half of South Africa’s 18 million credit active consumers have impaired records. This means that each credit holder has three or more payments in arrears, has an “adverse listing”, or reflects a judgment or administration order. Debt counselling applications has risen to more than 150,000 in 2009 alone.

In other words, a lot of people are not able to pay their debts and are having troubles. This is due to tough economic conditions that have severely affected not only populations in certain cities as Cape Town but the country as a whole. While some were retrenched and lost their steady income, others found that they were forced to take pay cuts as companies cut costs to stay afloat.

The NCR, faithful to the act that gave rise to its birth, has appealed to credit providers to assist consumers rearrange their repayments to affordable levels. Most credit providers, banks and micro lenders – everybody from the credit market are aware of this.

What To Do When You Cannot Suddenly Afford Your Repayments?

1. Do NOT Panic

First and foremost, remember that there is always somebody else having the same problem as you. If you are starting to miss payments, being aware of it and acknowledging it is better than letting the panic set in. Do know that having a clear head in this situation leave’s one cognizant of the right steps to take when faced with difficulties.

2. Keep Contact With Your Credit Provider/s

Although collector phone calls can be annoying, take a deep breath and answer them. Maintaining contact with your lender especially when you start to miss payments is more advantageous than acting like a fugitive. Were you retrenched? Notify your creditor right away. Establish if you have a credit life insurance included in your credit agreements. This is payable in the event of unemployment that prevents you from meeting your obligations in the agreement. There are also retrenchment packages that you could choose from wisely.

3. Seek Help From Registered Debt Counselors

As provided in the Act, a credit provider cannot take legal action against you once you come into arrears (missed payments) without sending you a notification warning first. This is in accordance to Section 129 of the Act. Included in the notice from the creditor is to ask you to seek for help through debt counselling. A registered debt counselor will assist you to manage and restructure your debts. You can find the list of registrants in Cape Town this website: http://www.ncr.org.za/register_of_registrants/index.php?option=DC

Just enter your town and search for a debt counselor near you. You can also verify if the counselor referred to you is registered or not by entering the name.