There has been a recent uptake in the demand for debt counselling services, as more and more people seek help with their financial indebtedness.
The debt review process takes up to 60 months, so it’s crucial that you find the correct debt counsellor to guide you through the process and help you emerge debt-free.
Beginning the process of debt counselling may feel daunting. The time frame, financial commitment, and impact on your credit score are all valid concerns. This process will be made stress-free and streamlined if you team up with a reputable debt review company.
Be sure to make a smart choice toward financial stability when choosing a debt counsellor by keeping focusing on the following qualities during your selection.
1. Be sure that it is a registered company with industry experience
A debt counsellor must be licenced by the National Credit Regulator (NCR) and must always give their clients up-to-date information regarding the debt review process.
You should be able to ask your debt counsellor any questions you have about the process. You should look for a new debt counselling service if you feel like you’re not getting any help and have more questions than answers.
If you have any doubts about whether or not your debt counsellor is legitimate, you can always ask for the NCR registration number and double-check with them.
2. Check that their fees are NCR-aligned
Debt counsellors are allowed to set their own rates, but these rates must be consistent with those established by the NCR. Refusal fees, reorganisation fees, application fees, after-care expenses, and even legal fees are all possible examples of such costs which may be incurred during the debt review process.
All of these fees are typically included in your new payment schedule, which the NCR requires to be reasonable for the customer. If you need more information about the fees involved, your debt counsellor should be able to provide this and address any concerns you may have.
3. Your debt counsellor should have a solid reputation
It’s important to investigate your options before signing up with a debt counselling service. Research the company by checking out their website and the services they offer, reading customer reviews, or comparing them to their competitors.
If your investigation and comparison with the NCR reveal that the company is not up to par, you should keep looking.
4. Your debt counsellor must be able to explain the debt review process
Debt counsellors who have completed the necessary training and are members of the NCR are obligated to provide consumers with accurate and timely data regarding the credit counselling procedure.
The National Credit Act (NCA) of 2007 established debt counselling as a formal and tightly supervised debt solution to ensure that South African customers are provided with ethical assistance in settling their debts.
5. Your debt counsellor must protect your confidentiality
Credit counsellors are required by law to protect the privacy of their clients’ financial and personal data. Inquire about the safety of their client data and whether or not it is shared with other parties if you decide to hire a debt counsellor.