September 29, 2022

What Does It Mean to Be Under Debt Counselling?

Debt Counselling

There are many misconceptions about being under debt counselling; for example, can I lose my car? Do I need a debt counsellor, and what can they do to help?

Not much in life is as stressful as carrying around too much debt – especially when you have no way to pay it back to your creditors. Of course, debt happens to everyone, but that doesn’t mean it has to weigh you down forever.

In 2007, the National Credit Act (NCA) introduced debt counselling to assist those desperate for help. Overwhelming debt is a reality for many, and the NCA provided a way for debt freedom to be attainable.
Debt review with a reputable company is the best way to deal with being overindebted and is a better option than administration or sequestration.

Read Everything You Need to Know About Debt Review

Is Debt Counselling a Good Idea?

The role of debt review and debt counsellors is to help you, not hinder your financial progress. You can rest assured that debt counselling will help you in the long run, even though you may worry about your financial status while under debt review.

Debt counselling is a great idea for those with too much debt who can’t afford to pay it back as they should. You’re safe when you’re under debt review, and reduced repayments will help you get back on your feet.

What Are the Advantages of Debt Counselling?

Debt counselling ensures that your repayments are manageable and your debt is reduced. The debt review process achieves that in the following ways:

  • Your creditors can’t contact or take action against you.
  • Debt counsellors will investigate ways to lower your repayments.
  • Blacklisting is not possible as you’re protected.
  • Protection for your assets from repossession is in place.
  • Debt counselling does not affect your permanent record.
  • Cut costs and make a single repayment to cover your debt.
  • Your basic needs and budget take precedence over your debt.

Debt counselling may seem daunting, but the reality is that it’s all about you and your well-being. By choosing debt freedom and accepting debt counselling, you will not be able to receive new credit, and you will need to pay a small fee. However, these are all minor inconveniences compared to a lifetime of being overindebted.

Paying off your debts may take longer (thanks to reduced repayments), but there is always light at the end of the tunnel. And that’s why debt counselling is a huge relief when every other option feels overwhelming.

If you need assistance with your debt payments, please do not hesitate to contact Debtline for a free callback.

Does Debt Counselling Affect Your Credit Score?

Having too much debt that you can’t afford to pay back will negatively affect your credit score and your ability to make large purchases in the future, such as buying a house. You may worry that being under debt review will permanently mark your credit score, but that is not the case.

Being under debt review can improve your credit score in the long run. Thanks to debt counselling being set in place by the NCA, you’re protected while under debt review. Once you’ve completed your repayments, your debt counsellor will contact the credit bureau to inform them that your profile is now clear and your credit score is updated accordingly.

No matter how much debt you have to deal with, Debtline is available to help you become debt-free as soon as possible. So let the debt counselling experts with a heart for people help you conquer your debt and set your mind at ease.