As you can see, after all the loans and their respective instalments have been accumulated, the total amounts are quite substantial, and in most cases unaffordable!
The role of a debt counsellor
Debt Review is conducted by a debt counsellor. There are various debt counselling companies in South Africa such as Debt Rescue, DebtBusters, Debt Wise and many other NCR-approved debt counselling companies. The counsellor’s responsibility is to conduct a financial assessment to conclude whether a consumer is over-indebted or not, ensure a proper negotiation is made to reduce the instalments and interest rates of the consumer, and to facilitate the process of debt review until the consumer is debt free.
On a broader scope, it is also the function of a debt counsellor to teach the consumer to be more debt wise and ensure they never get into such a situation again.