The profession of Debt Counselling was created by the National Credit Act, 34 of 2005. Debt Counsellors are registered in terms of section 44, 45 of the Act, subject to the conditions set out in Sec 46-49 of the Act.
Upon successful registration a Debt Counsellor is authorised to practice as such i.t.o. Sec 50 of the Act
You may apply to a Debt Counsellor in the prescribed form:
- To have yourself declared over-indebted; (Calculation made by Debt Counsellor)
- To restructure your credit agreements by reducing your monthly instalments by up to 60%
- The Debt Counsellor will issue a repayment proposal to your creditors and negotiate lower instalments and attempt to negotiate lower interest rates and cost of credit as well.
- To refer the matter to a Magistrate’s Court to have the repayment proposal made an order of court so that you are completely protected against any legal action. You do NOT need to go to court. Your Debt Counsellor will handle the matter on your behalf.
In summary, the Debt Counsellor is authorised upon receiving an application from a Consumer to rearrange the consumer’s monthly commitments in order to facilitate affordable repayment of the Consumer’s debt. The Consumer is required to comply with all reasonable requests from the Debt Counsellor and to make available all necessary personal information to the Debt Counsellor required for a successful restructuring of the Consumer’s debts.