Debt Councilling - Debt Relief

[ponder]

Saw this again on SABC2 this morning.

Basically deals with peope whose expenses & debt exceed their income. It's a way to manage your debt & seek relief from your creditors by adjusting payment terms etc.

If you get accepted for debt councilling you will be flagged as being under "Debt Review" with the credit bureau and will no longer have any access to credit until you receive a clearance certificate. This does however afford you legal protection from creditors because once you are under debt review they cannot take legal action against you. This has to be done before you receive a summons though, if you have received a summons it is to late I think but please do enquire.

This is what I picked up on tv this morning from the interview with the woman from Credit Matters.

I would also advise people to be carefull which (NCR registered) debt councillors they use as I do recall a Carte Blance issue where some of these people were charging illegally inflated management/admin fees.

http://www.ncr.org.za/Over-Indebtedness.html

 

[blunomore]

I also mentioned this in Niccia's thread last night.

I think it helps people who are in serious trouble, a lot!

 

[ponder]

I also mentioned this in Niccia's thread last night.

That's why I though of mentioning it here. Just coincidence I was up early this morning and saw it on tv and that thread was was the first thing that came to mind while watching it. Must admit I missed the fact that you mentioned it.

 

[marco79]

Please correct me if I'm wrong.

The time it takes from appointing a debt councillor for him/her to get agreemants from your creditors is so long that in that period you are summoned or a further judgement could be placed against you.

One of my relatives went the debt councillor route and almost lost their house. The debt councillor instructed them to pay him R3000 as an initiation fee & to stop paying all accounts until he gets agreements from their creditors to accept reduced payments. After about 3 months they got a visit from the Sheriff. Luckily they had saved the 3 months payment so they could put out one fire after the other after negotiating with their creditors themselves to accept reduced payments.

Oh well, they've learnt their lesson & lost R3000 in the process which could have gone into their bond.

 

[ponder]

I have no ideas as to the finer details regarding time periods, costs etc

It also seems some people rape you while down so be carefull who you see.

Best to do research from proven bodies as to allowed costs etc

 

[blunomore]

Please correct me if I'm wrong.

The time it takes from appointing a debt councillor for him/her to get agreemants from your creditors is so long that in that period you are summoned or a further judgement could be placed against you.

One of my relatives went the debt councillor route and almost lost their house. The debt councillor instructed them to pay him R3000 as an initiation fee & to stop paying all accounts until he gets agreements from their creditors to accept reduced payments. After about 3 months they got a visit from the Sheriff. Luckily they had saved the 3 months payment so they could put out one fire after the other after negotiating with their creditors themselves to accept reduced payments.

Oh well, they've learnt their lesson & lost R3000 in the process which could have gone into their bond.

Have a look on the NCR web site - they set out the process of debt counseliing clearly.

 

[marco79]

Have a look on the NCR web site - they set out the process of debt counseliing clearly.

That doesn't mean all debt councillors follow the NCR. Why do you think Carte Blanche done some investigation into debt councilling?

 

[blunomore]

That doesn't mean all debt councillors follow the NCR. Why do you think Carte Blanche done some investigation into debt councilling?

My point is that a debtor should ensure the counsellor is NCR registered before using her services.

 

[skoob]

A friend used a guy that was referred on the NCR website. Took all her accounts, didn't contact any of the service providers and after 4 months of her paying, she received calls that no arrangements were made. She tried contacting him, and couldn't get hold of him. He was always in meetings. She went to his office and there she found a chain around the door and a Sheriffs letter.

She contacted the NCR and NOTHING. They said that she used them at her own risk.