The Debt Counselor makes an
assessment of each client’s budget
based on income, expenditure and debt. Money is then apportioned for
living expenses before allocating money for your debt repayments.
For example if you earn a net salary of R10,000.00 and your monthly
debt commitment is R6 000. Your living expenses which excludes your
debt is around R7 000 per month. You therefore have R3 000 on a monthly
basis to service a monthly debt of R6 000.
Based on this assessment (Income minus Expenses), you will be placed
under "Debt Review". We would then negotiate with your creditors
proposing an easy payment plan for you which would probably become a
court order.
Whilst under Debt Review your assets will be protected under Debt
Counseling and NO
repossession will take
place.
Calls from creditors will also stop. Once all debt has been settled,
you will be issued with a Clearance Certificate and a clear Credit
Bureau listing.
Acting quickly is vital as once you are summonsed by your creditors, you can no longer apply for Debt Counselling.