Find out more about how debt counselling works and which debts you can use it for. Then have a one on one free consultation with one of our debt counsellors about how debt counselling is the best way to pay off or clear your debt.
Debt counselling is a formal legal debt relief measure that was introduced to assist over-indebted consumers through the debt review or debt counselling process in terms of Section 86 of the National Credit Act (NCA) 34 of 2005. Debt counselling was introduced to assist consumers with high debt levels to resolve their debt problems. Listen closely, this is mainly because the average household debt to disposable income ratio in South Africa is about 72%, which is amongst the highest in the world. This means that, on average, 72% of the monthly take-home pay that South African households earn goes towards paying the debt.
Get the facts before you apply for debt counselling. Here are the main reasons why the debt counselling solution was introduced:
I am glad you asked. You improve your money habits. This is arguably the most important benefit that debt counselling offers which is changing your habits with money. When you are under debt counselling, your behaviour with money changes as you learn to spend less and pay cash for purchases. You learn to live within your means. Before you know it you are debt-free.
The fact that debt counselling is premised on one not being able to borrow means that its focus is solely on debt elimination. Once you are debt-free you can start building wealth by playing more in the savings and investment field. This is where you want to be if you want to build wealth and retire with dignity.
Connect with our accredited debt counsellors
Complete our free debt assessment and receive a free credit report in a few minutes
You will be placed under debt review and a repayment plan is negotiated with credit providers
Your repayment plan is made an order of the court until your credit record is clean
In general, it takes 3-5 years for one to exit the debt relief plan. However, it depends on a number of factors and chief among them is how much debt do you have and how much you are prepared to pay on a monthly basis to service your debt. Debt counselling is however flexible in that if you are committed to paying more you can finish paying debt fast and exit.
What do l mean by this? I am glad you asked. Listen closely, at Debt Sage we do not hold back any of our clients. Should you run into some money i.e. inheritance from the rich aunt and you want to pay off all your accounts and be off debt review, yes you can.
They are no penalties whatsoever for paying off your debt fast. In fact at Debt Sage as debt counselling specialists, we encourage our clients to be aggressive in paying off their debt so that they can start a new journey of savings, investments and building wealth. No matter what you believed when you took out your loans, now it’s time to get serious about getting rid of them. Yes, it's possible and we have helped many realise their dreams click here to read what our clients say.
The people that let debts build up before they seek advice often find:
Our certified debt counsellors will
At the end of the debt counselling session, you will feel good knowing that there are options available and that you are not alone.