Debt Counselling is a process of assisting consumers that are experiencing debt review problems through:-
- Budget advice;
- Restructuring their payments;
- Negotiating with credit providers on their behalf, and
- Monitoring their payments while
- Providing after-care services
Debt counselling is done by a debt counselor. This is someone who is registered with the National Credit Regulator (NCR) and 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.
Debt Review process was introduced in 2007 with the National Credit Act (NCA). The benefit is that, while you’re getting debt counselling and in the process of paying off your debts, legal action can’t be taken against you.
Bear in mind that you can only take advantage of this process if you have a regular income to develop a reasonable repayment plan.