How will I know if debt counselling is the right thing for me? What if someone has their own business or only earns commission, can they apply for debt counselling?
If you are struggling every month because of debt, then anyone can apply.
The law says that you have to have an income to undergo debt counselling and the courts require that you prove that income. Only then you can apply for debt counselling.
- If you are in your own business, you can apply.
- If you earn commission only, you can apply.
- Even if you only get a pension, you can apply.
What happens if my debt counsellor goes missing or leaves the industry?
There is nothing that ties you to one debt counsellor. If you want to move to another one and they will take you, then you can move. If your debt counsellor goes missing, is uncontactable or doesn’t respond, you can move to another debt counsellor.
If you get a phone call and they tell you that you need debt counselling, or they will reduce your debt counselling payment every month – BEWARE. There are fraudsters in every industry, even in the debt counselling industry.
Don’t give personal information over the phone to anyone unless you are sure who they are and what they are going to do with that information.
If someone is planning to buy a house, but has too much debt, will they still be able to buy a house if they go into debt review?
Chances are that if you have too much debt, you won’t qualify for a home loan anyway. I have seen this many times. People want to buy a house , but their debt is just too much. Before you apply for a home loan, get your debt and your credit score sorted out, and then you will have plenty of money available to pay a bond every month.
We suggest going into debt review, clear your debt and after your credit score is sorted out you will be eligible to buy a house.
Why could debt counselling not work for some people?
When we hear from people that debt counselling doesn’t work, we get nervous.
Debt counselling definitely works. We have many, many clients who will tell you that, but not all debt counsellors are honest. Some make repayment plans that take forever to pay, and clients get frustrated.
There is one thing in debt counselling that everyone needs to know upfront. Once the repayment plan is made and accepted by the banks, the documents go to court and we get a court order which protects the client from any changes at the bank. But, it also states exactly how much the client must pay every month, and very often people short pay or miss payments. This allows the bank to cancel their debt review.
A lot of the people who say that debt counselling doesn’t work for them have missed payments or short paid and not caught up. And that’s why their debt counselling didn’t work for them.
If you would like to get out of debt so that you can be in control of your finances, contact RD Debt Counselling today. It costs you nothing to phone in or come to our offices for half an hour and discuss what debt counselling can do for you. It’s also a great opportunity to ask all of the questions that bother you.