What is debt counselling in South Africa?
Debt counselling in South Africa is a process where a person who is struggling to repay their debts can receive help and advice from a professional debt counsellor.
The counsellor will work with the person to assess their financial situation and come up with a plan to repay their debts.
It may involve negotiating with creditors to reduce the amount of debt that the person owes, or it may involve setting up a repayment plan so that the person can repay their debts over time.
How does debt counselling work through a debt counsellor?
An individual with a lot of debt can contact any debt management company and get in contact with a debt counsellor. The debt counsellor then assesses the client’s financial circumstances and provides some guidance on how to repay their debt.
The debt counsellor will provide you with a plan and it can include negotiating with creditors to reduce their monthly repayments, creating a budget on how to manage their money or consolidating all the debt into one monthly repayment (that will be less).
What debt counselling services are offered to clients?
- You will receive a full assessment of your debt
- You will receive counselling from a debt expert on how to manage your debt
- You will receive guidance on how to maintain a good credit record
- You will receive a payment plan (where your debts will be negotiated with creditors)
- One monthly payment on a consolidated loan will be less than what you are paying at the moment.
Is debt counselling good or bad?
There is no one-size-fits-all answer to the question of whether debt counselling is good or bad. It depends on each individual’s unique financial situation.
For some people, debt counselling can be a lifesaver, providing much-needed structure and support to help them get their finances back on track.
For others, it may not be the best solution, and could even make their financial situation worse.
If you’re struggling with debt and considering debt counselling, it’s important to do your research and understand all of the potential risks and rewards before making a decision.
Conclusion to debt counselling help
If you feel that you need some financial management, then you can contact a debt counsellor to provide you with some advice and guidance.
Debt counselling can be a helpful way for people to get their finances back on track and avoid getting into further debt. It can also help to reduce the stress and anxiety that can come with being in debt.
If you are struggling to repay your debts, it is important to seek help from a professional debt counsellor.
If you are struggling to make a decision on whether you need debt counselling, contact your financial advisor or debt counsellor services provider and talk to them.