Here we will discuss the main differences between Debt Counselling and Debt Administration
Debt counselling was introduced by the National Credit Regulator as a direct result of the outdated practices being used when it comes to people struggling with their debt. The idea behind Debt Counselling is to help clients pay off their existing debt that is both affordable and acceptable to their credit providers in the most cost effective way. All Debt counsellors are regulated by the National Credit Regulator with strict guidelines to ensure individuals are protected by law as well as conducting regular audits on Debt Counsellors to ensure they stay within the guidelines set. An Administration order was used prior to the new Credit Act with the view to resolve an individual’s over-indebtedness. However, this method can be very costly and limits the amount that you can place under administration, in many instances your debt will increase and never solve.
Includes all your debt no limit.
Reduced fees (NCR Regulated).
Set time lines to clear debt.
Clear your credit record
Maximum debt allowed R50, 000.00
Costs can be up to 90% of your payment.
Many instances result in increased debt.
unlikely to clear record as debt remains unpaid
These are just a few examples of the differences however, it is clear that most people should take the option of debt review, We already have 90% of all creditors allowing us to mediate on their behalf as a result of systems put in place and agreed via the Task Team agreements in place between Debt Counsellors and all major Credit Providers.