Debt Counselling Explained: Debt Counselling offers a remedy to over indebtedness that has the aim at rehabilitation into the credit market.Debt Review will protect the consumer from losing crucial assets and keep the Credit Providers from taking legal action on accounts that was lawfully included in the debt review. Any consumer can apply for debt counselling, upon which an assessment will be done to determine the state of over indebtedness. If a consumer is found to be over indebted, the Debt Counsellor will notify all Creditors and negotiate with them in an effort to get the term of each credit agreement lengthened and/or the instalment reduced. In many cases the Credit Providers even agree to a reduced interest rate. All monthly debt obligations will then be consolidated into one monthly instalment that will cover all obligations under the debt review. Should all Credit Providers agree to the proposed debt re-arrangement, the Debt Counsellor will file an application with the Magistrate's Court to obtain a consent order which will then enforce the agreed debt re-arrangement. Should a situation arise where not all of the Credit Providers agree to the proposed terms of the debt re-arrangement, the Debt Counsellor will file an application with the Magistrate's court in an attempt to get a court ruling on the proposed terms of the debt re-arrangement. The consumer will then make monthly payments according to the debt re-arrangement until balances have been settled or if the consumer are able to continue with payments at the original contracted rates and instalments. As soon as the consumer has settled all obligations in terms of the debt review, the debt counsellor may issue a clearance certificate, indicating that the consumer is now rehabilitated. Consumers are advised to ask their debt counsellors to give an in depth explanation of all aspects of the debt review.
"Debt counselling services, Port Elizabeth, South Africa."
