National Credit Info
The National Credit Act 34 of 2005 (NCA) provides a debt relief procedure known as debt counselling. By legitimising the process, the act ensures that the process receives the attention it deserves – and that applicants have something more than just the goodwill of creditors to fall back on in times of crisis.
The National Credit Act also ensures that consumers receive access to the credit they can handle and no more, so whilst it is critical to help and protecting over-indebted consumers, it also aims to change the future of consumerism in South Africa.
Debt counselling is the process by which the act aims to bring over-indebted consumers back from the brink of insolvency, in such a manner that consumers are still able to maintain critical aspects of their living, such as transport, housing, food, schooling of their children and so forth. It should be noted that debt counselling is only for those consumers who are truly over-indebted, and should not be seen as a way to simply pay lower monthly instalments on their debt. Using it for any other purpose as the act intended will not be tolerated by the National Credit Regulator (NCR) which is the governing body that oversees the application of the National Credit Act.