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Do You Want To Be A Debt Counsellor cont.

Often when consumers are in financial trouble, they drop vital insurance cover (perhaps even cover required under the T&Cs of their credit agreement. E.g. with a car). This leaves them exposed.

When going through a realistic and sustainable budget, a Debt Counsellor may want to set aside funds for such cover.

The consumer would have to discuss the specific cover with a FAIS advisor.

Consumers also often have built-in Credit Life Insurance in their various credit accounts. Some Debt Counsellors put consumers in touch with FAIS compliant service providers who can provide similar cover at a more competitive rate.

‘service providers who can provide similar cover at a more competitive rate’

The ability of consumers to save a few Rand on such cover may result in their debts being settled a little faster, particularly if a credit provider comes back after a proposal and makes a counter proposal asking for additional funds above what was initially offered.

Working closely with specialist insurance providers who understand and cater to consumers in debt review, can provide consumers with better protection (like if they are retrenched half way through the process) and can even provide additional revenue streams (if you are prepared to do some work relating to the process).

Debt Counsellors should also consider professional indemnity insurance, should they run into a problem with a case.