March 24, 2017

Debt Help

With the proper planning, South Africans seeking debt help can avoid significant hardships resulting from unpaid balances or credit problems, namely home foreclosure or vehicle repossession. These situations also lead to black marks on a credit history that can make obtaining new loans quite difficult if not impossible. On a positive note, debt help seekers have several options and resources available to them for correcting these financial issues over time. Economic hardships and unpaid loan balances are now quite common for many people through no fault of their own, so plenty of assistance is out there for those committed to making negotiated repayments.


The National Credit Act (NCA) of 2007 was created to provide debt help for South Africans struggling financially, often due to rising costs of living and salaries that have not kept pace. Seeking assistance under the NCA bars any creditors from taking any legal action against an individual trying to improve his or her financial situation. This type of debt help program is not an additional monetary loan; instead, it’s a form of debt restructuring that allows debtors to submit a single, lower payment to a payment disbursement agency.


Resources for Debt Help

Debt counseling services are available for anyone who is left owing instead of saving money after paying basic bills each month. This form of debt relief ensures that no further legal action from creditors is taken against an individual. Once all creditors have been notified that the debt review process has started, a debt counseling specialist receives documentation from each creditor concerning the exact amounts owed.


Applying for Debt Help

Many debt counseling agencies offer free initial consults, and a number have debt help application forms available online for easy download and completion. New debt help seeking clients will need to furnish their complete contact information as well as their total monthly income and expenses. On the same application form, they also need to include the names and complete account numbers of each creditor they owe. After attaching a scanned copy of their identification and latest paycheck receipt, first-time debt help clients can then consult with a debt help specialist who will determine how much each client is over-indebted every month.


After the first consultation, many debt help counselors do charge fees for the entire debt review process, since the process involves the filing of several forms and interfacing with the Court of Affidavit. Some counselors allow clients to pay on a sliding scale based on what they can afford. Others also deduct fees from restructured monthly repayments at a later time, saving clients the added requirement of paying up front.


Debt Help under the National Credit Act

To get the best results for each debtor’s financial situation, a debt counselor will help to negotiate a consolidated repayment to be disbursed to each creditor every month. Many debt help agencies have online portals for clients to set up their own repayment accounts for easy automatic withdrawals after each payday. Part of a debt counselor’s job under the NCA is to ensure each client has the funds to pay for monthly living expenses first before rendering a consolidated debt payment to the payment disbursement agency.


Debt Help through Counseling

In addition to debt help through review and consolidation, a qualified debt counselor can also provide advice and tips to clients for better managing their personal finances. This debt help consultant can give suggestions for making a monthly budget, saving funds for emergencies, cutting out unnecessary spending and reducing dependency on credit cards. Such information can be quite valuable in terms of avoiding further debt, preparing for unexpected expenses and living within one’s means even in the midst of rising costs of living.


Rising debt-to-income ratios are a fact of daily life for many South Africans, but this situation does not inevitably mean financial hardship. For those who find themselves with uncontrollable payments to creditors despite their best efforts at money management, debt help is available through laws set in place by the NCA. Experienced debt counselors are able to act as intermediaries and help with repayment negotiation for each of a client’s outstanding balances. They can also provide advice and answer questions throughout the process.


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