A debt counsellor, especially in Johannesburg, is a qualified individual who deals with matters of over-indebtedness when it comes to consumers. Before becoming a debt counsellor, the individual must be accredited with the NCR. as it is highly illegal to dispense debt counselling advice without doing so.
Under The National Credit act, debt counsellor are authorised to act as intermediaries between a consumer and their creditors in order to reduce payments and interest rates. Doing so will alleviate the over-indebtedness of the consumers, whilst ensuring that all creditors are eventually paid their dues.
A debt counsellor through their efforts can set in motion the prevention of legal action being taken against the consumer by their creditors. Whilst they work on the consumer’s negotiations with creditors, the consumer is protected. This is why a debt counsellor is an indispensable avenue of help to a consumer who cannot meet the monthly demands of their creditors anymore.
Debt counsellors do not work for creditors and will always put the consumer first. Their priority is to set a payment plan in place that affords the consumer enough money for living expenses whilst helping them rehabilitate their credit relationships.
Due to the fact that they must be accredited with the NCR, these individuals will be highly knowledgeable about all credit related laws, and might even identify instances where creditors have not acted within the law.
It is always recommended that a consumer in Johannesburg facing over-indebtedness meet with a debt counsellor to discuss the possible remedies available to them.
Article written by: Andrea van Tonder 04-2013