In a time where the economy is down and debt is on the rise, many people are living paycheck to paycheck and getting loans or using their credit cards more often due to lack of disposable income.
This is an extremely unsustainable way of living and very often people end up in financial ruin due to bad financial management on their part.
Luckily for those who still have their heads above water and aren’t yet drowning in debt to the point of bankruptcy, there is a solution that not many people are aware of.
It’s called debt review and to date has saved many a family from financial ruin and debt collectors.
Debt review proceedings begin by a person going to consult with a debt counsellor. At this juncture it is important to note that some debt counsellors are not registered with the National Credit Regulator and attempt to scam people of what little money they have left, so please remember to ask your debt counsellor for their NCR certificate and make sure that it is still valid.
If you are still not 100 per cent sure you can always go to the NCR website and search for the debt counsellor’s name in the debt counsellor section available on the website.
The debt counsellor will assess your current financial position, rearrange your finances and negotiate better repayment rates with your creditors.
In this way they attempt to bring your debt repayments to a point where they are within your financial means while also allowing you enough money to live within your means.
Once negotiations are complete and a final proposal is drafted, the debt counsellor will make application to court to have the person declared over indebted and to have the proposal made an order of court.
Once the debts are paid off, the person may approach an attorney or the debt counsellor to have them declared no longer over indebted.
If you have issues managing your finances, we strongly advise you to approach your nearest registered debt counsellor for assistance or go to your bank and request the services of a financial planner to assist you through these tough financial times.
Should you already be under debt review and your debt has been paid, you are welcome to attend our offices to find out more about the way forward.
For more information on this topic contact our offices on 011 897 1900 or info@tuckers.co.za
Article contributed by Justin Ferreira of Tuckers Inc.
