Debt Counselling, when done right, by a reputable, competent and NCR registered Debt Counsellor is by far the most effective debt management mechanism available to the South African consumer who is burdened and struggling to repay their debt… Especially those struggling to pay for assets such as cars and houses.

It’s actually quite a seamless process… Again, when done properly!!

From a legal standpoint, the protection a consumer receives will prevent long term ramifications with their credit profile and their ability to gain access to credit once their situation has improved in the near future or when they qualify for credit again.

The most important legal protection in my personal opinion is the fact that a consumer is protected from bank repossession of either their car, home or in most cases, both…

In mid-2020 when the pandemic was in full swing, as an economy we were well familiar with the national lockdown and experiencing first-hand the devastation the levels 4/5 had on us.

I spent some time at a Sheriff’s office in Somerset West where I sadly saw so many consumers bringing in their vehicles to be handed over back to bank repossession.

I was overcome with a lot of emotions, anger being the dominant one…

I thought to myself “Why didn’t these people just reach out and ask for help?”

The saddest part is that they’re not only sitting without a vehicle but most likely still owe on that contract (instalment sale agreement) with the bank and will have to continue to pay for a vehicle THEY NO LONGER HAVE!!

It’s absolute madness…

What’s worse is the fact that exactly the same thing is happening to consumers who have bonds that they have fallen behind on and are now being forced to sell, what was once their home. However, because we’re currently in a ‘buyers market’, they often won’t get what they really want for their property and will also still most likely owe on the bond. As the sale of the property is often not enough to settle all the seller’s debt, let alone the outstanding debt on the bond.

Again, being left with paying a bank for a shortfall on a bond repayment for a house, THEY NO LONGER LIVE IN OR OWN!!

It’s absurd I tell you…

Debt Counselling compared to the other older ‘debt management’ mechanisms such as ‘Administration’ or ‘Sequestration’ has far less negative impacts on you and more importantly, is far less expensive. You also just don’t get the protection that you would from the National Credit Act from these two mechanisms as you would be guaranteed under formal ‘Debt Counselling’.

For a FREE copy of our report ’12 Ways To Become Debt Free In South Africa’ fill in your email address in the opt-in form, or simply direct message one of our social media accounts and we’ll have it emailed to you directly. You’re also more than welcome to email me directly for a copy at andre@exonerate.co.za

This guide will give you a better understanding of what your current options are, more importantly, what we think the best option for you is, in today economic climate. Although we can only ascertain that after a consultation with you.

We can talk for hours about the reasons that consumers do not reach out to reputable Debt Counsellors, but that’s not what this post is about…

If you’re in a position where you’re currently struggling with debt, especially as a result of Covid19, and more importantly you have assets such as a car and a house you’re still paying off. I’m urging you to do your due diligence, by doing proper research and find a reputable, trustworthy ‘Debt Counsellor’ in your area.

Set up a consultation with them either via telephone or even better, go in and see them face to face if you can.

At the end of the day, you’re looking to entrust someone with helping you restructure hundreds of thousands, if not millions of rands worth of debt. So you definitely are within your rights to take every single precaution possible,  since we’re dealing with your livelihood here, and not just a measly old loan or Woolworths account.

If you’re not sure where to start with doing research, pop us an email and request a FREE no BS telephonic consultation with us and we will gladly guide you with competent and professional advice that is in your best interest, not just ours as a business.

A good starting point would be to ensure you tick the boxes below when doing research in your area for a reputable, trustworthy Debt Counsellor.

1. Are they NCR registered?
2. Do they work with a NCR payment distribution agency?
3. How long have they been in business?
4. Do they have a website?
5. Do they have a social media account where they post factual content, more importantly, where you can see actual consumer comments or better yet, actual reviews and testimonials of past and current clients?
6. Who are the actual ‘Debt Counsellors’ or are they just a bunch of ‘call center’ agents?

For a more in-depth post on how to choose a reputable and trustworthy ‘Debt Counsellor’, read our blog post with the same heading and you will definitely be in a position to make an informed and educated decision for the financial benefit of yourself and your loved ones.

I hope this post added some value, and I’m always encouraging readers to comment in the section below or better yet, pop me an email (yes, I check my own email even though it can get a bit hectic with quite a few emails per day)and I’ll personally reply to you with whatever query you may have.

Also be sure to follow and engage with us on our social media platforms such as Facebook, Instagram, Twitter and YouTube which has a  whole library of resourceful video series named #AskADC (Ask A Debt Counsellor).

I hope you’re staying safe and sane during these challenging times and remember, no matter how bad things may seem now, there’s always light at the end of the tunnel. Nighttime doesn’t last forever, the sun must rise again…

To your financial independence…

Andre Misrole

Founder & Chief Growth Officer

Exonerate SA