The Debt Counsellor

When you are placed under debt review, you have appointed a debt counsellor who has worked through your income and expenses and has determined that you are over-indebted and debt stressed.

This debt counsellor will then inform your creditors and the credit bureaus and draw up an interim repayment plan.

This plan often reduces your monthly debt repayments by up to 50% and reduces the interest rates on unsecured lending.

Your debt repayment plan, created by the debt counsellor, will then be submitted to a registered payment distribution agency (PDA) that makes all the payments to your creditors on behalf of the debt counselling company.

Once your creditors accept the revised repayment plan, legal action cannot be taken against you with regard to your debts under review. Once all your debts have been repaid, you will be issued a clearance certificate by your debt counsellor and they will notify the credit bureaus that you are no longer under debt review/debt counselling.

It’s important to note that debt counselling is not like blacklisting and any record of being under review will be removed from your credit record once the process has concluded successfully.

The duties of the Debt Counselor include: #

  • Fully inform the client of the debt procedure
  • Clearly explain the costs involved
  • Ensure the client understands the consequences
  • Ensure the client understands what is expected from him/her

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