Debt Counselling | Debt Counsellors SA

Debt Counselling - Needed?  Call Debt Counsellors South Africa
WELCOME TO THE WEBSITE OF DebtCounsellorsSA.com

Debt comes a long, long way! *The Bible tells us of over-indebted people. Don’t feel alone – millions of other consumers experience the same debt-stress as you. We will help you take control of you finances again. Contact us now for Debt Counselling!

We are a team of NCR registered debt counsellors, ready and eager to help you make an end to you debt problems. It is our vision to contribute to help all over-indebted South African consumers to become debt free again. We are also members of DCASA (Debt Counsellors Association of South Africa) and stays on top of changes in the industry.

MAKE SURE YOU ONLY DEAL WITH NCR REGISTERED DEBT COUNESELLORS – ASK FOR THEIR REGISTRATION CERTIFICATE AND NCR NUMBER. DEBT COUNSELLORS ARE NOT ALLOWED TO RECEIVE YOUR MONTHLY PAYMENTS OR DISTRIBUTE YOUR PAYMENTS. THERE ARE PRESCRIBED FEES AND DEBT COUNSELLORS MUST ADHERE TO THIS. IF IN DOUBT, SPEAK TO US FOR ADVISE.

Debt Counselling is still a fairly new concept in South African law, stemming from the National Credit 34 of 2005, which came into use in June 2007. South African lawmakers and judges have a huge responsibility in developing the concept, as there were no precedents to follow – and still many uncertainties regarding the interpretation of the Act exist. Through the process it is hoped that people will be able to save for retirement, provide housing for their families, educate their children, pay for services and generally manage their debt.

Already the legislator had to give clarity to certain areas of the Credit Act and a Declaretor was brought before Judge Ben Du Plessis on 21 August 2009. There is a possibility that the Act will be re-written in future, to be more applicable.

A huge demand for debt counselling assistance exists in South Africa . The percentage of consumers in good standing is continued deteriorating (full report on www.ncr.org.za)  

Of the total 17.79 million credit-active consumers as at end of the June 2009 quarter, 55.9% were ingood standing. This was a quarter-on-quarter decrease of 1.7% and a year-on-year decrease of 4.5%,indicating that the level of debt-stress continued to increase.  

The percentage of consumers with impaired records (the inverse of those in good standing) at the end of June 2009 quarter was 44.1% - comprising 16.8% of consumers in 3+ months in arrears, 14.2% of consumers in adverse listings, and 13.1% of consumers with judgments and administration orders. A detailed breakdown of the nature of impairments is provided in the table below.  

 The impact and cost of over-indebtedness should not be underestimated, and it is reflected in social grants being diverted into debt payments, maintenance payments not being made, municipal service payments falling into arrears and finally, households being impoverished and denied basic resources.

The NCRA was enacted in March 2006 to comprehensively regulate the credit industry in South Africa . Government was concerned about certain abuses and malpractices that developed in a previous unregulated environment. Malpractices included the retention of bank cards, pins and ID documents by micro-lenders, as well as abusive collection methods.

The Act further makes provision for disclosure of cost of credit, regulate the Micro-lending industry and prescribe certain costs, such as initiation fees and service fees, as well as maximum interest, credit insurance, default administration costs and collection costs.

In short, the Act makes provision for:

Prohibition of unfair credit and credit marketing practices;
Promotion of responsible credit granting
Prohibition of reckless credit granting
Provision for debt review and rearrangement mechanisms in cases of over-indebtedness;
To educate consumers concerning credit and consumer rights;
To improve credit information and reporting on credit bureaus.

One of the major issues the Act addresses is the debtor’s RIGHT to consult a debt counsellor for debt counselling. Creditors are obliged to inform consumers about this right by way of a Section 129 letter, before they can proceed with legal action and issue a summons.

It will now no longer be necessary to run around to try to arrange for another credit card, an overdraft, personal loan or consolidation loan. Many consumers have lost their homes, by taking out a second mortgage, to cover debt. The debt counsellor will evaluate your over-indebtedness and work out a sustainable budget, where you will still be able to pay off your debt via the PDA (Payment Distribution Agency) in one consolidated payment every month. After you have paid off all your debt, the Debt counsellor will issue a Clearance Certificate, to clear your name from all credit bureaus.

DebtCounsellorsSA.com has been established to ensure financial freedom to over-indebted people, with dignity and understanding.

DebtcousellorsSA.com is registered Debt Counsellors and waiting to help you to work out an individual plan for your debt restructuring. The Registered Debt Counsellors are willing to negotiate with your creditors, to reach a suitable agreement, to work towards an end-goal of a debt free life.

We have satellite offices in South Africa . Our head offices are in Strand ( Somerset West, Gordon’s Bay) in the Western Cape , Bloemfontein in the Free State and Alberton in Gauteng .

The sooner you realise your debt problems and seek help, the easier it would be for them to negotiate a deal with creditors. Creditors have put measures into place to be sure to retrieve their money. They have established Call Centres and appointed debt collectors, who will go to great lengths to make sure you pay. Your only protection would be debt counselling, as creditors are not allowed to legally act against you, take you to court, repossess your possessions, car or home, or garnish your salary.

Before thinking of bankruptcy (sequestration), first consider debt counselling. There are talks of Administration being phased out in the next few years and then debt counselling, will be the alternative remedy, with no monetary limitation and homes and vehicles can be included.

We provide:

Debt Counselling      :           Where we negotiate with you creditors and bring down you monthly repayments to an
         affordable amount (up to 40% ).

Debt Management    :           We will help you draw up a sustainable budget and give advise on financial matters.

Debt Consolidation  :           You will pay ONE consolidated payment to the Payment Distribution Agency, who will pay
        your creditors.

All cases are handled confidential and with the utmost privacy.

The freedom to contract has always been seen as an important cornerstone of any civilized society. It grants individuals who bargain with each other the security and certainty that the terms of their contracts will be complied with. It also assures them that their contracts will be enforced by a competent court in the event of any default. This general understanding and comfort is what drives and holds together trade and commerce in free market economies.

*The Bible refers to debtors and creditors. The difference however was that the creditors during Biblical times were much more lenient towards debtors. In Exodus 22:25 [God says] “If you lend money to any of my people with you, who is poor, you shall not exact interest from him; If ever you take your neighbor’s garment in pledge, you shall restore it to him before the sun goes down...”

The sanctity of contracts and freedom to contract has always been viewed seriously by the law and the judicial system. Under Roman law (which forms the foundation of South African common law), compliance with credit contracts was so serious that failure to pay resulted in the debtor and his family being sold to slavery (Robert Sharrock et al “Hocklys Insolvency law” at 9). Roman law also allowed the creditor to cut the body of a debtor. He could be excused if he cut more flesh than he was anticipated!

These primitive methods of enforcement were later replaced by imprisonment of debtors who failed to pay their debts. In later years a debtor, who wanted to avoid imprisonment, surrendered his whole estate to the creditor. This latter principle was accepted in Roman Dutch law and formed the foundation of early insolvency law in SA.

In modern times there has been a gradual shift from these strict rules. More attention is presently being given to the problems of the consumer. The prohibition of over-indebtedness and reckless lending are intended, among other things, to provide more protection for consumers and to bring a balance of power between creditors and debtors.