Debt counselling is a process that gives South Africans who are struggling to make their monthly debt repayments, a chance to regain financial control and become debt-free.
There isn't a difference between debt counselling and debt review. They are different words that refer to the same process. Because of this, we will use both terms in this blog post.
*The reason this will be reduced is because registered national debt counsellors can approach credit providers on your behalf and request reduced interest rates on your loans.
5. Once you have completed the debt counselling process you will be issued with a Debt Clearance Certificate.
This lets your creditors and the credit bureaus (companies that issue credit reports) know that you have successfully completed the debt counselling process.
You can now start applying for credit again!
FYI: Consumers married in community of property must jointly apply for debt counselling.
There is a common misunderstanding that being under debt review will negatively affect your credit score.
This is not the case. Debt counselling can help your credit score. When you enter the debt counselling process, creditors can no longer add any further negative information to your credit profile because you will now be under the protection of the National Credit Act.
Your Debt Counsellor will make sure your creditors are aware that you are under debt review and this means they can no longer take any legal actions against you. After the debt review process has been completed, you will receive a clearance certificate and the credit bureaus will be notified. This means that any details of judgments or arrears are cleared.
Overall, the debt counselling pros outweigh the cons, but it is very important to remain fully aware of all pros and cons before embarking on the debt review journey.
The time debt counselling takes is calculated based on the amount of debt you have. The maximum time period an individual can be in Debt Review is 60 months.
The Debt Counsellors' fee is taken from the first two repayments of your debt review process. Creditors have agreed that by negotiating a reduction in interest rates the first two installments are paid to the counsellor.
What's important to note is that all fees are regulated by the NCR and we follow the agreed industry pricing. This means that you will not be scammed if you sign up with Meerkat's debt management (debt counselling) solution.
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Meerkat is registered with the NCR (National Credit Regulator – NCRDC2613). We understand that life happens, and you can start to fall behind on your debt repayments. We can help you regain financial control and walk the journey with you to becoming debt-free. As a team, we’re looking out for you.
We also offer competitive credit life cover to protect you and your family if you die, are retrenched, become disabled or suffer a severe illness.
Do you know how much you are paying on your current loans for cover? We may be able to replace your existing cover where it makes sense to do so.
We will also kickstart an emergency savings fund as part of your debt management plan. This ensures you have funds available for when life happens. Don't delay, get started today!
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