NCR Registered Debt Counsellors: Helping You Regain Control of Your Finances
Too much debt is a growing issue in South Africa. The debt problem is a complex one that needs more than one solution, such as financial education and better access to affordable credit. Stronger consumer protection laws may also be needed. The role of debt counsellors who are registered with the National Credit Regulator is also critical in supporting individuals and families struggling with debt. NCR registered debt counsellors will help you manage your debt and guide you towards financial stability.
Many consumers struggle to manage their debt. One or two unexpected costs in a month can start a cycle of debt that can be difficult to break. According to recent statistics from the NCR, as many as 42% of the 23 million consumers with debt in the country have been in arrears for three or four months or, even worse, have judgments against them for outstanding debts.
The COVID-19 pandemic made the problem of over-indebtedness worse. Many individuals and families had to face financial hardship due to job losses and reduced income. The South African government created several measures to support individuals affected by the pandemic, including debt relief and debt restructuring programmes.
If you are in financial distress due to debt, a smart option is to consult NCR registered debt counsellors. These are professional debt relief specialists under the control of the National Credit Regulator. They are trained to provide debt counselling services under the National Credit Act (NCA).
How Can NCR Registered Debt Counsellors Help You?
NCR registered debt counsellors are trained to assist consumers who are struggling with debt. They usually have a great deal of experience providing debt counselling services to those who are over-indebted. They offer support and will assist you if you are at risk of losing control of your debt. Their responsibilities include:
- Conducting a thorough assessment of your financial situation. They will determine if you are over-indebted or at risk of becoming over-indebted.
- Setting up a debt repayment plan for over-indebted consumers. The debt repayment plan will be tailored to your specific situation.
- Negotiating with the consumer’s creditors to reduce your monthly instalments, interest rates, and fees, where possible. These specialists focus on making your debt repayment plan manageable for you.
- Providing ongoing support during the debt counselling process. NCR registered debt counsellors ensure that you stay on track with your debt repayment plan and stop you from getting into more debt.
Overall, NCR registered debt counsellors play a crucial role in helping consumers regain control of their finances to become debt-free.
Risks of Using Non-Registered Debt Advisors
Unregistered ‘debt advisors’ should be avoided for several reasons, including:
- Not having the necessary knowledge. They may not have the training or qualifications needed to give sound debt management advice nor may they understand the legal rules of debt counselling in South Africa. Their ignorance may lead to unhelpful or harmful advice.
- Not guided by a reliable regulator. NCR registered debt counsellors are controlled by the National Credit Regulator. They must follow strict standards of professionalism and honesty. Unregistered ‘debt advisors’ report to no one. There is no guarantee that they are acting responsibly or honestly.
- Taking advantage of vulnerable clients. Individuals posing as ‘debt advisors’ take advantage of vulnerable consumers. They charge very high fees for their services and are dishonest about their qualifications and experience.
- No legal protection. If a consumer uses an unregistered ‘debt advisor’, they have little legal protection. Consumers who use NCR registered debt counsellors can ask the National Consumer Tribunal to settle disputes and provide legal remedies.
Rely on Professionals Who Can Make a Real Difference
National Debt Counsellors will act in your best interests to free you from the crushing weight of debt. We can help you reduce your instalments to an amount you can manage. Contact us today for a free, no-obligation assessment of your financial situation. Deal with your debt in the best possible manner and don’t end up worse off than you were before!