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Steps To Take Before You Chat to a Debt Counsellor

If you’re finding it hard to make ends meet, and you’re struggling to keep up with your monthly expenses and debt payments, you might be thinking about speaking to a Debt Counsellor.

That’s a smart, responsible step — but before you book that appointment, there are a few simple things you can do to get organised and make the process a lot smoother for yourself.

Here are five important things to do before meeting with a Debt Counsellor:

1️ Do a Bit of Homework About Debt Review

While you can’t take the official NCR debt counselling course or spend months online learning about debt review you can do some basic online Googling and research.

So, before you jump in, take some time to read up on how debt review works.

Why not visit the debt counsellor’s website, have a look at Debtfree magazine articles, or browse the National Credit Regulator (NCR) website (www.ncr.org.za).

That way you can get a feel for what debt review is, how it works, what it can help with, and what it can’t. Having a basic understanding will make you feel a lot more confident and help you ask the right questions when you eventually chat to a Debt Counsellor.

If you are reading this article then you have already taken this step. A good start.

2️ Do a Bit of Homework on the Debt Counsellor

Not all Debt Counsellors are the same.

Some are big and some are small. Some are super-efficient and others less so. So, it’s important to check who you’re thinking of dealing with.  

If you have someone in mind then the first thing you want to do is make sure they are registered with the National Credit Regulator (NCR) — you can quickly confirm this on the NCR’s website. You will spot it on emails and their website. It looks like this: NCRDC#####

It’s also a good idea to read some online reviews (like Hello Peter or Google reviews) or ask around for recommendations. Take note of both the good and the bad reviews so you can get a balanced picture of how they work and treat their clients. Remember angry people tend to write angry reviews and these can be a bit misleading. Compare any negative reviews to see if you spot any trends.

For example, if you see lots of reviews that say they never get back to you when you try communicate that’s a red flag.

3️ Do Some Homework About Your Debts

Next, get a free credit report from a credit bureau like TransUnion, Experian, or Compuscan.

This report will show you which debts are officially listed under your name. Then, gather your most recent statements from your credit providers and compare them with your credit report.

This can be a bit scary and maybe you have been trying not to think about how much you owe everybody but that’s not helpful if you are trying to make a proper plan to deal with your debt. Get the report and statements together. That way, you’ll have a clear and accurate list of what you owe and who you owe it to.

4️ Do Some Homework About Your Income & Expenses

It’s very helpful to know exactly what your household brings in, and where that money goes every month.

The Debt Counsellor will want to know who in your household works or has some sort of income even if it changes a bit from month to month. This gives them a realistic view of your average income.

Write down your regular expenses — rent, groceries, data, transport, school fees, medical costs etc. Also, include things you know you should be paying or saving for but can’t manage right now. This information will help the Debt Counsellor work out what you can realistically afford to pay towards your debts and see if you can actually add back in some funds towards things like insurance, savings or annual expenses (like school stuff for the kids).

5️ Make a List of Questions to Ask

If you followed step 1 you might have learned a lot about the process but, you will probably still be a bit confused about how certain things will work in your particular situation.

Think about what you’d like to know ahead of time. You could ask questions like:

    • Can I see your NCR registration certificate?
    • How long will the process take in my case?
    • What are the fees?
    • Who will do my legal stuff? Can I get their number?
    • Which PDA do you recommend I use?
    • What happens if my situation drastically changes?
    • Can I take more credit while under debt review?
    • Will debt review show on my credit record?
    • What are the benefits of going under debt review?
    • How will you support me along the way?

Having a list of questions will help you feel more prepared and in control. Feel free to show them to the Debt Counsellor when you meet. 

It’s also a smart idea to take good notes during your discussion so you can refer back to them later. Many people say they got a lot of information during that first meeting and they later started to get confused or forget.

Get Prepped For Success

If you take these 5 simple steps before meeting with a Debt Counsellor, you’ll improve your chances of finding the right person to help you.

And remember — you don’t have to sign up straight away or stick with the first person you meet if it doesn’t feel right. While it is always good to act on your debt sooner rather than later it is also good to find the right fit. Someone who you feel has got your back and told you the facts in a way that made it easy to understand. Someone who you can work with for several years while you get back on your feet financially.

A little advance preparation can speed up the consultation process, make it easier for the Debt Counsellor to properly assess your situation, and put you in a better position to get the help and support you need to take back control of your finances.

So, consider taking these 5 steps before you chat to a Debt Counsellor.