Credit Counselling in Times of Trouble
South African’s are under considerable financial stress at the moment and If you would like to enter into credit counselling in accordance with the National Credit Act of June 2007, remember that there is a process that you must follow. Missing out on any steps in this process may lead to your application being rejected. First there is a list of documents that you must hand over to the debt counsellor of your choice. You will need a copy of your South African ID as well as proof of your monthly income such as a salary slip and/or commission statements. Next you will need to submit the latest account statement as well as any judgements and lawyers’ letters that you may have received from your credit providers.
You will also need to contact the various credit agencies in South Africa for a credit report. A debt counsellor can access this information for you at a fee. You will then have to draw up a budget including all your monthly overheads and expenses. In cases of partners married in Community of Property, all the above documentation and expenses must be included on behalf of your spouse. Once you have submitted all this documentation, your credit counselling provider can assess your situation and decide whether you qualify for the debt review process. If your application has been accepted, the debt counsellor will then start interacting on your behalf with your credit providers.
Your obligations do not end here. You must continue to make payments to your creditors until you receive a payment schedule from the National Credit Agency to whom you will be making future payments. You will also have to destroy all your credit and store cards. You will also not be able to enter into any new credit contracts with any credit provider.
To make sure that your follow all the correct procedures for credit counselling in order that your application for debt review will be successful, simply contact us.