Rising interest rates, rising fuel costs, rising food and electricity costs, this is what South Africans have had to face in the last year. So, if you're struggling to make ends meet right now, just know this:
- You aren't alone.
- The cost of living has increased.
- It's tough because right now, life is tough.
If you’ve assessed your financial situation and made the decision to do debt counselling (debt review), are you sure the debt counselling company you’re considering is the best one for you?
With so many debt review companies out there, and so many scammers trying to prey on people desperate to get out of debt, how do you ensure you’re not just signing up for one of them?
Who are the best debt Counsellors in South Africa?
Top 5 debt review companies in South Africa
Meerkat was ranked as one of Top 5 Debt Counsellors in the large debt counsellor category at The Debt Review Awards in 2022.
We have also partnered with South Africa’s most reputable Payment Distribution Agency (PDA) - Hyphen PDA. Debt Counsellors should never be paid directly. Instead, your fees are taken care of by a PDA.
Any Debt Counsellor offering to help you with debt review(debt counselling) should be registered with the ncr (National Credit Regulator).
At Meerkat, we have registered Debt Counsellors who are qualified and actually able to do the job, they say they can do.
Read some of our reviews from clients on HelloPeter:
What are the disadvantages of a Debt Counsellor?
One of the disadvantages that some people may highlight about the debt counselling process is that when you undergo the process, you temporarily lose access to credit. What’s very important to note here is that:
- Not having access to credit is temporary.
- You cannot sustainably get out of debt by taking on more debt.
Another disadvantage someone may flag is that once you sign, you’re locked into the process.
Here, you should be aware that debt counselling is not something that you should just signup for lightly. You should do your research regarding process so that you’re fully aware of what you’re getting yourself into.
The reason for this is that, once you are found to be over-indebted, you cannot simply de-register from the process. You have to complete it. The good news is that by paying up your debt according to the restructured repayment plan, you can and will successfully complete the process.
How much does a Debt Counsellor cost?
Debt counselling is not a free process. There are costs involved. There isn't, however, a standard price involved for debt counselling. The cost of your debt counselling fees will be dependent on:
- How much debt you have.
- The term (how long) you will be under the debt review process for.
Usually, the debt counselling fees will be paid using your first two months of debt review payments. During this time, your accounts will NOT go into arrears because before the process begins, your Debt Counsellor ensures that your creditors are on board with the restructured repayment plan. They know that payment of accounts should commence during the third month of the debt review process.
Watch this video by one of our debt review consultants as she explains the debt review fees in South Africa.
Is debt counselling a good idea?
Debt counselling is a great idea for anyone who is found to be over-indebted and cannot cope with their monthly expenses. Your life does not have to be a struggle from month-to-month, constantly worrying about how you will pay for everything, having to choose between eating or paying your debts. With debt review, you can have your cake and eat it.
Like anything worthwhile, this process will require discipline, patience and determination. It’s not a quick fix and it’s definitely not a way to simply just get rid of your debt. Debt counselling at Meerkat is how you can manage your debt and get on top of your finances again!
