Why is debt counselling important?
Debt counselling can assist you with getting your budget under control by implementing a new repayment plan with creditors. Debt counselling is especially for those struggling to make monthly payments as it can reduce 99% of your interest rates and 100% of your monthly payments. Here are a few reasons why debt counselling is important.
You receive protection under the National Credit Act
Debt counselling enables you to protection under the National Credit Act. After you apply for debt counselling with Clear Future, your creditors cannot trouble you or take legal action, provided that you pay regular monthly instalments. This is the most ideal way to become debt free.
Pay one monthly instalment
The monthly instalment includes a new repayment plan which is discussed with creditors – it is a much smaller amount to pay each month. You could pay 70% of normal vehicle instalment, 80% of normal bond instalment and 30%-40% on unsecured debt.
Be able to afford your monthly commitments
The National Credit Act recognizes that your household is under financial stress and together with us at Clear Future, we aim to reduce your monthly debt so you can afford your monthly commitments.
The Debt Counsellor takes on negotiations
The debt counsellor liaises with creditors directly. They will request a Certificate of Balance and ensure that you enter into a manageable repayment plan with lower monthly payments and interest.