What exactly is debt counselling?

Simply put, debt counseling is the process by which a qualified professional sits down with you to analyse your budget and draw up a manageable repayment plan to settle your outstanding accounts.

To start with we'll compare your monthly income to your set monthly expenses to determine where your money is going to and ensure that you are able to take care of yourself and your family while you settle your debts.

This gives us the necessary perspective to determine where we can make adjustments to improve your cash flow. Once your budget has been finalised, we then look at how we will divide the rest between your creditors.

The entire process of applying for debt counseling normally takes no longer than 60 working days and starts with the completion of a form (Form 16), which allows Libertine Consultants to apply for a court order on your behalf that allows us to restructure your debt repayments.

Benefits of debt counselling:

Debt counselling reduces your monthly repayments to your credit providers.

Also, we will negotiate for reduced interest rates. This depends on the amount that is being offered to the credit provider.

We will also reduce your credit life insurance. The banks current credit life insurance rate is R4.50 per R1000 and we will reduce it to R2.20 per R1000

You will be able to have more funds available in your budget.

The harassing calls from the credit providers will stop.

The entire process of applying for debt counselling normally takes no longer than 60 working days and starts with the completion of an application form (Form 16), which allows Libertine Consultants to apply for a court order on your behalf that allows us to restructure your debt repayment.

Your only responsibility will be making your monthly payment.

Your debt review instalment is based on your affordability.

There is no extra fee for our services. Your first two payments will be allocated to complete the application. The first payment goes to us and the second would go to our attorney. On your third payment, it will go through to your credit providers and we get a 5% aftercare fee to manage your accounts on a monthly basis.

All payments are made to a PDA (payment distribution Agent), which is registered with the NCR and gets audited on a monthly basis.