Don’t Be Quick To Blame Your Debt Counsellor

The Blame Game

Many consumers who are under debt review are frustrated when they are contacted by a collections agent or receive a statement from a credit provider that differs from what they expect to see. Their court order restructuring their debt may indicate that a debt will be paid off within a certain amount of months but the credit provider may show their balance as having stayed the same or even increased.

This is naturally frustrating and concerning. If you have been paying regularly every month why is the debt not showing as smaller or paid off?

The natural inclination may be to blame the Debt Counsellor.

Or perhaps an account has been paid up and then some more funds are paid over to the credit provider out of the monthly repayment amount. This could happen more than once, meaning that you now have a growing credit sitting at the credit provider and those funds have not been paid over to other credit providers who you still owe funds to. This can also be frustrating. You may bring it to the attention of the Debt Counsellor and yet it happens again.

The natural inclination might be to blame the Debt Counsellor

‘The Debt Counsellor does not work for credit providers or have access to their computers’

Who is Actually to Blame?

It is important to remember though that the Debt Counsellor acts as your agent in some matters and assists the court with a recommendation to restructure your debts. The Debt Counsellor does not work for credit providers or have access to their computers. They also do not touch your money at any point (they do receive a small fee payment from you each month though – that’s why they continue to help you).

So the real problem may actually lie with (1) the credit provider who is not updating their information or computer systems. The good news is that your Debt Counsellor can help you to chase them to do so. So, don’t chase them away or threaten to quit using their services. This is when you need their help even more than before.

When funds are not been distributed correctly then the problem probably lies with (2) the Payment Distribution Agency. These are the people who handle the money. They handle a lot of payments and sometimes things can go awry. If you let them know about it they will put in a lot of work to sort out the situation for you. Your Debt Counsellor can assist you with this as they probably have a good working relationship with the PDA. So, don’t threaten to stop using the Debt Counsellor’s services because of these hiccups. Rather this is when you need them the most and is why you pay aftercare service fees each month. Your Debt Counsellor can help.

‘don’t threaten to stop using the Debt Counsellor’s services because of these hiccups’

Be sure to talk to your Debt Counsellor (sometimes you need to make sure you talk to the right person and not just the first person who answers the phone at the office) about any challenges you face with your debt review. They are there to try to assist you and make sure the Banks and PDAs give you the service you deserve.






2 comments on “Don’t Be Quick To Blame Your Debt Counsellor

  1. I am confused ,I have never skip a payment but I am paying more plus my balance due from creditors is far less than debt councillor and I don’t get them on their contacts not responding to my emails. What to do?

    • Step One: Do not assume your Credit Providers figures are correct (they probably are not).
      Step Two: if you cant reach your Debt Counsellor then contact your Payment Distribution Agency.

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