Debt Counselling

One of the main problems for people in countries all over the world today is debt. In recent years banks and other financial institutions have overstretched themselves in terms of lending and this has meant many people have credit they cannot afford. Some people are lucky and are able to make the repayments on the credit that they have taken out, but not all of them are so lucky. In fact right now there are thousands of people each day who are realizing that their debt situation has spiralled out of control.

If you are not able to repay your credit and you are being hassled by your creditors you could be able to benefit from the debt counselling process. When you accept that you are in financial difficulty and you need assistance with your debt and debt counselling process could be exactly what you are looking for. Within a short space of time you could have reached an agreement with your creditors and you could be paying off all of your debts with a single monthly payment that is lower than your previous repayments combined.

In order to start with this process you will need to go and speak to a debt counselling company who will be able to give you all of the help that you need. You will be assigned your own debt counsellor who will take you through the process and who will make sure that they are on hand to answer any questions or queries that you may have. The first part of the debt counselling process is being put under a debt to review. This is an important stage as when you are under this review your creditors will no longer be able to pursue any legal action with you for a period of 60 days, or until the review has been finalised. You are protected against this illegal action from the fifth day after your application for a review has been received, so if you want fast protection from legal action this is the way to do it.

Once the debt counselling process is under way you will need to provide a debt counsellor with information relating to your monthly income and expenditure. Your debt counsellor will work out how much money you have left over after all of your expenses such as rent, food, utilities and so on have been paid for. It is this amount that is left over that will then be used to negotiate your repayments with your creditors. If you are not prepared to spend this money on your repayments you will be unsuccessful during this process.

However if you are happy and determined to get yourself out of debt and you are prepared to spend this money on your repayments your Debt Counselling can start negotiations with your creditors. You will find that creditors are much more likely to accept a repayment plan that has been discussed with a debt counsellor. This is due to the fact the debt counsellors are following the rules set down in the National Credit Act and creditors need to respond to offers of repayment from them. When the negotiations have been finalised you will start making one payment each month which will go to your credit or creditors. At the end of the term of your agreement you will be debt free and you will be able to carry on as normal.