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One of the biggest reasons that consumers in Pretoria are still hesitant about applying for debt counselling, is that they do not understand the process of debt counselling. We will therefore elucidate the steps that a consumer in Pretoria will go through during the debt counselling process:
- Firstly a Pretorian consumer will meet with the debt counsellor in order to assess their debt situation. When doing this, the consumer should prepare all the necessary documents that debt counselling requires. This includes bills, bank statement and ID documents. This will give the debt counsellor a clear overview of what the consumer owes, as well as what they earn.
- Secondly the debt counsellor will restructure the budget of the consumer, allocating an amount for living costs, and the remainder for debts. Consumers should take into account that the budget is worked out very strictly with the focus being on debt payment. This does not mean that consumers in Pretoria will suffer though, as all expenses are accounted for.
- Once the budget is drawn up, the debt counsellor contacts the consumer’s creditors and informs them that the consumer is now undergoing debt review. When this happens, payment is halted for 60 days in order to finalise the paperwork and negotiate new payment plans with creditors. Consumers need not worry as the debt counsellor will take care of all this.
- Once all negotiations have been set in place and all the paperwork has been finalised. A payment distribution agency is selected. The PDA will handle all payments, including allocating the amount set aside for living expenses. This means that the consumer is not responsible for the new payments at all. They only need to sit back and wait for their debts to be paid up.
- Once all debts are settled, the consumer is issued a debt clearance certificate, and given back control of their finances and future.
The process for debt counselling in Pretoria is incredibly simple – the consumer need only ask for help and the debt counselling agency will take care of the rest.
Article written by: Andrea van Tonder 07-2013