How does debt counselling work?
The law
South African law makes it possible for us to rearrange your debts in a way that you will pay an affordable amount every month. Only a registered debt counselor can do this and that is precisely what we at 58-eight are.
Step one
The first step is to make an appointment with us to discuss your unique circumstances and establish a budget for that is reasonable and sustainable. We will provide you with a free credit bureau report and recommend a solution for you that will free you of debt stress. Should Debt Counselling be for you, then we will assist further. If there is a more appropriate solution for your circumstances then we will advise you of the best way to approach it. We will never make a recommendation that we do not believe is the best for you.
After we have explained the costs and obligations of Debt Counselling, you will make a formal application. From this moment forward no lender is allowed to harass you and they cannot make any attempt to take away your car, home or other assets, unless legal action has already commenced.
Step two
Next we will notify your lenders that you are getting your debt sorted. We will confirm all of your balances with them and then propose a plan in line with what you can afford. We will ask them to make sacrifices to help you out of your difficult spot in order to make the plan work. You will start making a single monthly payment that covers all of your obligations, including our fees.
Step three
We will obtain a Court Order to make sure that you stay protected until you complete the program. When that day comes we will issue you with a clearance certificate and notify the credit bureaus of this. On receipt the bureaus will clear your record and you have become debt free.
