Benefits Of Debt Counselling
Once a consumer has made an application for Debt Review, credit providers cannot attach any assets or take any further legal action against the consumer pending a determination by a Debt Counsellor as to whether the consumer is actually over-indebted or not. Only if the Debt Review pre-dates legal action.
Repayment of a consumer's debt obligations is done through a payment distribution agency or alternatively as arranged by the Debt Counsellor.
The Debt Counsellor will set aside a certain amount of income for the consumer's necessities (for example food, school fees, transport costs etc.) and the remainder of the money is left to pay the consumer's debts.
A registered Debt Counsellor is likely to get a positive response from the consumer's creditors when it comes to negotiating repayments as opposed to a consumer approaching his creditors.
A consumer may make one monthly payment to a payment distribution agency that pays all his creditors whilst under Debt Review. This one easy payment will make a consumer's finances much easier to manage and reduce his banking fees.
A registered Debt Counsellor will be able to advise a consumer on ways to manage living expenses.