Are you having debt Problems?
In the current economic cycle many individuals are facing Debt problems.. The same debt that was easy to managed previously is becoming too much to handle with cost of living increasing and income shrinkage month to month.
Thanks to the National Credit Act that came into effect in June 2007, there is an alternative to help people manage their debt. Over in debted consumers can now apply with Lx debt counsellors for debt counselling with the help from the National Credit Act.
The biggest mistake a consumer can make is doing nothing! They wait and hope for a miracle or hope their situation change. They depend on an increase or bonus at work, or to win the lottery, go gambling or hope the debt or creditor disappears. If you leave your problem for too long, not even a Debt Counsellor will be able help you.
How does it work?
Once your completed application and all documents have been received, Lx Debt Counsellors will be able to conduct an assessment to verify your financial situation.
Lx Debt Counsellors will contact you by telephone or arrange a face to face interview to discuss your assessment in more detail.
Should you wish to continue.
Lx Debt Counsellors will notify all Registered Credit Bureau’s and Credit Providers on your behalf to list you as having applied for Debt Review thereby ensuring that no more actions can be implemented against you, provided that you honour your payment arrangements.
For the next 60 working days you have protection under the National Credit Act and also until the court rule the matter. This means they may not take legal action against you, if they do contact you, simply refer them to Lx Debt Counsellors. Don’t sign any forms or hand over anything.
Lx Debt will act as a mediator between yourself and all your creditors. We will draft a proposal on your behalf showing your new reduced payments per month. The proposal will be based on your own individual circumstances and what you can afford. This proposal will be sent to all your creditors and if your creditors agree to this proposal we will obtain a court order that formalizes this new reduced payment schedule.
The first month you pay no one except the agreed amount to Lx Debt Counsellors. You will be required to pay the reduced amount in terms of the new payment schedule to a Payment Distribution Agent (PDA) for the period until the proposal is approved by all your creditors.
You are able to increase your monthly payment over time, and this will mean that your debt will be settled sooner.
What is the Qualifying Criteria?
The main criteria is that you must have an income. The income must be sufficient that you have money left after paying for your essential expenses before debt payments every month. In other words, you must have money left after paying for food, transport and other expenses to survive from day to day. The money you have left after your essential expenses is the money you have available to pay creditors. This amount will be offered to creditors as new payment each month.
Lx Debt Counsellors