Thu Oct 27 14:57:23 SAST 2016

Do you need some debt counselling?

By unknown | Oct 08, 2007 | COMMENTS [ 0 ]

Angela Graham

Angela Graham

One of the stipulations of the National Credit Act is that debt counsellors should be appointed to help people who are in financial crisis or who have become over-indebted.

The Act requires that credit providers ensures that their consumers can meet their financial obligations.

If debt is granted irresponsibly, debt counsellors may be appointed to restructure a loan where a debtor is unable to repay his debt on time. This could be done by extending terms of the agreement, postponing payments and/or recalculating interest.

A debt counsellor, Khomani Mavoko, who is registered with the National Credit Regulator, said that people in a financial crisis made appointments to see her so that she could help them restructure their debt and bring their finances under control.

The debt counsellor informs all registered credit providers that the individual is under debt review. This must happen within five working days of application.

From that day, no legal action can be taken against the consumer and the debt counselor must make a ruling within a specified period of debt review application.

If the individual is found not to be over-indebted, a letter of rejection will be issued informing all interested parties of the decision.

However, if the individual is over indebted, the debt counsellor will inform the individual and all the credit providers and credit bureaus of the findings within a specified period from date of formal review. The debt counsellor will then start negotiations with the relevant parties and make a reasonable offer for payment that accommodates the monthly living needs of the individual.

If you need financial advice or think you might be over indebted you can call Khomani Mavoko on (041) 484 1839.


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