According to TransUnion Financial Hardship Survey in 2020, four out of five, or 82% of South Africans are in debt. Fortunately, the government introduced legislation that helps people who are over-indebted to find a way out. The National Credit Act 34 of 2005 enabled people in this situation to get a status called “Debt Review” if they are under debt counselling. A debt review status eases the pressure debtors receive from creditors. In addition, it might also lessen the monthly repayments. Commitment to debt counselling can make you fully debt free. One such company that offers debt counselling is the National Debt Advisors (NDA).
NDA is a Cape Town based debt counselling company that started out in 2012. In 2020 it was voted best debt counselling company of the year. They offer a wide range of debt management solutions including debt counselling and consolidation both online and offline. This article highlights the debt management solutions you should expect from NDA.
How Debt Counselling Works
Debt counselling is a lawful association a borrower gets into with a debt counselling company. The borrower is charged for getting a practical solution to his debt problem from the debt counsellor. The solution may involve changes on spending habits, but in extreme cases taking out a bigger loan to pay off the smaller loan. This is called debt consolidation. In cases like this, where the borrower is over indebted, they are put under debt review. The debt counsellor contacts your lenders, credit bureaus and the National Credit Regulator and informs them that you are under debt review. Lenders will not be hard on you like they were before to pay off the debts you have with them.
Once you have a plan with your debt counsellor outlining how best to settle your loan, you should commit to implementing the plan. Spend as much as the debt counsellor advices you to and make the new monthly repayments without fail. Being under debt counselling is one of the last resorts for people who are over indebted. You should make sure it is successful.
National Debt Advisors (NDA) Debt Counselling Process
National Debt Advisors (NDA) either be contacted online, by calling the cell number 0210038733, or by visiting their offices.
- To use their online platform, go to the NDA website. Fill in your names, your cell phone number, and your email address in the section titled “Need help getting rid of your debt?” then click on the “Contact Me Now” button.
- A professional consultant will call you on the same day. The consultant will take you through the application process.
- The consultant will ask you for more details about your financial situation. You should expect to give information about how much you earn monthly and how much you spend. The consultant will establish whether or not you are over indebted.
- The company will then inform your lenders, credit bureaus and the National Credit Regulator that you are under debt review.
- Your credit providers will then submit your debt balances to NDA.
- After finding out your debts, the debt counsellor will discuss with you a budget that enables you to cater to your monthly expenses and make monthly repayments towards the debts.
- Each lender then has a monthly repayment which you can afford to give them. NDA negotiates with them on your behalf till they agree to the amounts.
- In case there is a failure to agree, NDA will seek a court declaration to make the new repayments legally binding.
Advantages of Debt Counselling
- Debt counselling is done by experts. You will be better off letting a debt counselling company deal with lenders and debt collectors.
- Debt counselling comes with a debt review status. Under debt review harassments from debt collectors and lenders will stop. NDA will deal with them so that you never have to talk to them directly again.
- Debt counselling provides a practical plan out of debt. If you follow the advice from NDA you will follow a fully laid out plan all the way to being debt free.
- With debt counselling you will get a sustainable repayment schedule. After NDA negotiates with your lenders to accept lower monthly repayments over a longer loan term, you will have more money freed up. You will not have to keep borrowing for or end up forgoing essential monthly necessities.
Other Means to Manage Debt
The National Debt Advisors (NDA) also offers debt consolidation, debt management, debt relief and debt rescue services to customers. Of these, debt consolidation is the odd one out. The rest are involved within the “NDA Debt Counselling Process” steps above. All these strategies are for borrowers with overdraft loans, credit card loans, payday loans, unsecured personal loans, vehicle loans and even home loans. As an added feature, NDA also has two complementary services online. One is the debt review calculator online to help you find out if a debt review will be best for your case, and two is a free analysis to find out if you are over indebted.
Debt Consolidation is borrowing a big loan to pay off all the small debts you have. Debt consolidation can be advantageous if you stick to the terms of repayment, but NDA advises against it unless it is necessary. Although NDA does not offer loans, they have partnered with several banks to help you find a consolidation loan in case you want one. The partners include First National Bank, ABSA, Capitec, Wesbank, Nedbank, Standard Bank and SA Home Loans.
Debt is okay when it is manageable. It is good when it delivers on its promise. But there is a limit to how much debt your can get. Debt gets ugly when it is too much that it becomes overwhelming. This is what happens when you are over indebted. However, there is help for anyone who is over indebted. The National Debt Advisors offer counselling and debt management strategies that will help you overcome over indebted and lead you to a debt free status. Contact the National Debt Advisors for debt counselling.
- How to Find a Good Debt Counsellor
- Read This Before You Choose Your Debt Counsellor
- Debt Counselling: The Benefits and Risks
- 12 Ways to Get Out of Debt Fast in South Africa