How to find the right debt counsellor for your needs

Debt counselling is a legal process designed to assist consumers who are struggling to make their debt repayments. As part of the programme, a certified debt counsellor will offer advice and direction for effective debt management.

Finding the right debt counsellor, however, can prove challenging. This article offers expert advice for making this crucial decision.

The importance of having a qualified debt counsellor

When seeking debt counselling services, it’s vital to find someone with the right qualifications and expertise. The debt counsellor you choose should have a deep understanding of industry laws and regulations, and be able to help you make informed debt management decisions.

Choosing the right debt counsellor

In addition to being suitably certified, a good debt counsellor will have a professional, ethical approach. They should prioritise your financial wellbeing, and supply unbiased advice. They should also be transparent about their fees and services, and be able to answer all of your questions about the debt counselling process.

The following points outline some key attributes to check for when choosing a debt counselling company.

They must be registered with the National Credit Regulator

Debt counsellors must be registered with the National Credit Regulator (NCR). You can check their status by requesting their registration number and verifying it on the NCR website, or by searching for the company by name on the NCR database.

Their fees must be in line with NCR guidelines

Debt counsellors may set their own fees, but these must be aligned with the fee structures stipulated by the NCR. 

Fees will apply for your application, debt restructuring, creditor rejection of a restructuring proposal (should this occur), aftercare services, and any legal issues that may arise. Your debt counsellor should provide you with a breakdown of the fees and answer any questions you may have.

The above costs are typically included in your restructured payment amount, which the NCR stipulates should be affordable for you. 

They must use a reputable payment distribution agency

By law, debt counselling companies are not allowed to make payments to credit providers on your behalf once your debt has been restructured. 

Instead, they must use a payment distribution agency (PDA) that is registered with the NCR. The main function of a PDA is to distribute funds owed to multiple creditors on behalf of the borrower. It must ensure timely, accurate payments, and handle the complexity of multiple repayment schedules.

They must prioritise privacy and trust

The relationship between you and your debt counsellor should be based on trust, because the process will require you to share confidential financial information. Your debt counsellor should keep this data private and secure. 

Your debt counsellor should also have sufficient security measures in place to ensure external parties cannot access your information.

They must have a good reputation

Before signing up with a debt counselling company, it’s essential to conduct some background checks. Visit the company’s website and compare its offering to that of its competitors. Check whether it has featured in the media, and if so, how it’s been portrayed.

Consider its reputation within the industry – awards sites and the like can provide an objective view.

They should have good reviews and testimonials

Assess what people have said about the company on Hellopeter and other online platforms. Has the company received good or bad reviews? Have people been satisfied with the service received?

If you have any doubts, don’t sign up. Keep looking for a well-regarded company with references you can check.

They should offer additional support

Check whether the company offers additional support services, which may include, for example, financial education, help with budgeting, and access to your credit report.

DebtBusters offers debt-management, debt-settlement, and insurance services, in addition to debt counselling.

Can you change from one debt counsellor to another?

The decision to change your debt counsellor can be difficult to make, but it’s essential to find someone who can provide the support you need to effectively manage your debt obligations.

The following pointers can help you to prepare, and reduce the complexity of switching debt counselling companies.

1. Identify your needs: Assess your situation and determine the support you require.
2. Research and compare: Explore different options, considering qualifications, experience, and client reviews. Look for feedback that indicates the company can address your specific needs.
3. Schedule consultations: Once you’ve identified a few potential companies, schedule consultations with them. Use the opportunity to ask questions and express your concerns. Look for a debt counsellor who listens, provides credible advice, and makes you feel comfortable.
4. Consider the fees: It’s important to compare fees to ensure you are getting value for money. Look for a counsellor whose fees are transparent, and who can provide a clear breakdown of the costs.
5. Make your decision: Your decision should be based on your confidence in the counsellor’s ability to give you the support you need to resolve your debt situation.

DebtBusters is an award-winning debt counselling company with a successful track record in assisting overindebted South Africans to become debt-free.

For more information on our debt counselling process and services, call us at 086 999 0606, or request a free call-back from one of our consultants by filling in the form on our website.

Feel free to contact us if you need further assistance or have additional questions.