Difference between Debt Counselling and Debt Administration

The idea behind Debt Counselling is to help clients reduce their overall debt with creditors in the most cost effective way. An Administration order can take a large part of your disposable income to offset the relatively high cost.
Debt Counsellors have been introduced by the National Credit Act in order to specifically deal with people in trouble with their finances and therefore have the support of and have to be approved by the Government. An administration order was used prior to the new Credit Act with the view to resolve an individual’s over indebtedness. However, this method can be very costly and with various limitations.
Unlike under an administration order, 95% of your monthly payment will go to your creditors under a debt counselling plan.
Our debt counselling plan will manage all your payments to creditors from a central distribution agency on a monthly basis on your behalf. Under administration, distribution by Lawyers is only done once every three months after all their costs have been deducted (In some cases it can take longer than a year before your creditors’ receive any form of payment).
Any amount of debt can be consolidated through debt counselling. Your debt can not exceed R 50,000.00 in order to be placed under administration.

Reasons to confide in Mi-Debt

All our fees are included in your repayment plan

Our fees are regulated by the National Credit Regulator (NCR) and are included in your affordable debt repayment plan.

Mi-Debt is operated by professionals

The persons in charge of Mi-Debt’s operations are attorneys, accountants and ex senior bankers. In our opinion, Debt Counselling is a legal process and not all registered Debt Counsellors are necessarily competent enough to deal with the challenges that the process brings. Debt Counselling can be a life changing success if it is dealt with by competent Debt Counsellors, but in the hands of an incompetent Debt Counsellor it can be disastrous.

Mi-Debt has very good relationships with most of the Credit Providers

Mi-Debt has established very good relationships with most of the Credit Providers in the industry, therefore making the process of settling matters and disputes with Credit Providers quicker and easier, ensuring a very high success rate of the process as a whole.

Highest level of service in South Africa

As one of the most prominent players in the industry, the impeccable reputation of Mi-Debt is of the utmost importance to us and we endeavour to ensure that the level of our service and our ability to provide consumers with the best possible debt help, are the highest in South Africa.

Mi-Debt makes use of specialist attorneys in Debt Counselling

We only make use of specialist attorneys in the field of Debt Counselling who have established networks of correspondents all over South Africa and who always keep abreast with the latest changes in the law pertaining to Debt Counselling.

You can be assisted in 9 of the official languages of South Africa

You can rest assured that you will be assisted in your mother tongue, ensuring that you have no problem understanding the Debt Counselling process and everything there is to know about it.

You do not have to attend a consultation in person

Although you may arrange for a consultation in person, the whole process can be finalized telephonically and via e-mail, making it extremely easy to make use of the Debt Counselling process. We take your hand and guide you through the whole process, no matter where in South Africa you reside, so there is nothing to be afraid of.

Your application is treated with confidentiality

Your application is treated with the utmost confidentiality and therefore your employer or friends will not know that you are making use of Debt Counselling. Not that it is an indignity, seeing that chances are that 46% of all the people you know are financially distressed…

9.05 million South Africans are in arrears with at least 3 instalments

The latest available statistics of the NCR indicates that 9.05 million consumers have impaired records. That is more than 46% of all credit-active consumers in South Africa. Since the implementation of the National Credit Act, Mi-Debt has assisted thousands of consumers to ease their financial distress and, where possible, to save their assets.

7 Findings about debt in South Africa

Consumers owe as much as three quarters (75%) of their monthly pay to creditors

More than half (53%) of respondents are in the age group 31-45, and there is a substantial spike (39%) in applicants who want to go under debt review who are under the age of 25

Consumers who are struggling to pay their home loans currently stand at 56.86%

Consumers who are battling to pay off their credit card debt are running at 58.83%

As much as 38.67% of consumers who have a bank accounts do not know what interest rate they are getting on their savings accounts

22.19% of consumers have no idea of what they’re paying in banking fees

Only 23.42% of South Africans have any money left at the end of the month- the other 76.58% are flat broke.

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