Updated 29.05.2021

Read This Before You Choose Your Debt Counsellor

You can find help from the internet or you can join any online debt management group. There are various options for you to get help for the management of the debt. But crucial point is that you can better decide according to your financial picture but, at least, you should read this before you choose your debt counsellor.

The burden of a loan is never easy to bear for anyone whether he/she earns through salary or business profit. Credit providers keep chasing at each step and you don’t find any sigh of relief. In case of default, the legal fees and the collection begin to grow at a rapid pace and debt amount gets doubled sooner or later.

But debt counselling seems to be the only option to get rid of the hard consequences of being a defaulter. Debt counselling enables you to manage the repayment of the debt. Counselling makes you repay an affordable monthly amount to the Payment Distribution Agency that afterward repays to the credit providers. National Credit Regulator (NCR) regulates the payment agency.

It sounds good that when you are deemed over-indebted through debt counselling then coming events seem in your favor quite often. But the question remains that how can we be nicely entertained by debt counselling when there are always risks involved concerning service termination by debt counsellors for consumers or deregistration of counsellors, etc.

How To Choose Your Debt Counsellor?

Conceivably, various debt counsellors may not provide you equally good services. You can find satisfied customers who have got the best services but there are non-satisfied ones as well. It is not a grievous task to choose your debt counsellor. Here are some important things to consider first if you are seeking a counselling service.

You must know that your debt counsellor should be a member of the National Debt Counsellors Association of South Africa.

According to the Debt Counsellor Association, a debt counsellor should give priority to the interests of clients.

Customers must not contact those counsellors who don’t use a registered payment distribution agency.

A Debt Counselling Rule System (DCRS) approved by National Credit Regulator (NCR) should be followed by a good debt counsellor.

Customers should consult only those counsellors who are registered with NCR.

Good debt counselling requires that all dealings with customers should be in a proper written form including a signed consent.

Continuous support to clients is a part of good counselling and only professional ones can do the job for their customers.

A few more things to consider by a customer

Suppose you have found a trusted debt counsellor. Before going into the procedure of a contract of counselling you should ask about the services that the counsellor is going to offer. You should also be informed about the mode of services that the counsellor is supposed to provide e.g. online services, at the local office, or through phone, etc. At this point, you should be well informed about the service charges that a counsellor is going to charge you throughout the process. And also knowing the payment schedule for fees is important. It should also be asked whether a debt counsellor offers any educational workshop or resource material to make you understand how things will proceed in the future.

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