How to free yourself from the debt trap 9.6 million credit active consumers had negative payment records in December 2009 according to the latest Credit Bureau Monitor Reports. Hundred of thousands of newly purchased cars are being re-possessed by the banks every month – proof of consumers still living beyond their means.

With rising electricity prices and ever-increasing day to day living expenses, consumers should be tightening their belts. ‘Consumers should focus on liquidating their debt as fast as possible in a difficult economic climate’ advises Peter Barton-Hill, CEO of PBH Consulting, an NCR-Accredited Debt Counseling firm. Debt counseling was introduced by the National Credit Act and can be a solution to over-indebted consumers. ‘Consumers may qualify for debt counseling if their monthly living expenses and debt repayments exceed their net income (take-home pay)’. How does debt counseling work? Following an in-depth assessment our company will inform you whether or not you qualify to be placed under debt review. A proposed repayment plan is set out for your creditors whereby your current monthly debt obligations are restructured so you pay only what you can afford. Our company also compiles personal budgets as part of our services, taking into account your essential living expenses such as groceries, utility bills and education. This helps you reduce non-essential living expenses so you live within your means. Mr Barton-Hill explains: “Once placed under debt review creditors may not take legal action against consumers for a period of at least 60 days while an assessment is concluded and new repayment proposals are drafted. Should any creditor reject a proposal they are required to submit a counter proposal. Our company will assess the counter proposal and if the consumer is still unable to afford the proposed repayment plan the matter is referred to a court or credit tribunal in application for a consent order. A consent order outlines the new payment plan and creditors are obliged to accept the terms of the consent order”. “A high percentage of South Africans are over-indebted and there is no need to be ashamed’ comments Mr Barton-Hill. “ Economic pressures and the cost of credit weigh heavily on many consumers, as well as other factors such as job losses and social spending patterns. We ensure the consumer is in safe hands, taking time to explain the process and advantages debt counseling can provide. An average initial consultation takes 2-3 hours. Consumers from all walks of life are affected by debt. ‘The highest percentage of over-indebtedness rests with consumers with a higher than R700 000 household income per annum.’ Getting into debt does not necessarily mean that you cannot manage your personal money matters. We are here to place your finances back on track. Debt counseling will ensure you do not lose your house and vehicle and are able to liquidate your debts in affordable installments and secure peace of mind” Debt Counseling is the most affordable means of obtaining legal representation and having your debts restructured. You pay only R50 to apply. For single applications a once-off fee is charged equal to your first restructured monthly installment or R3000, whichever the lesser. Joint applications (which include your spouse) may cost R4000. These fees may be paid upfront or deducted from your initial installment to creditors. An after-care handling fee of 3-5% of your restructured installment (up to R300/month) applies until such time as your debts are liquidated, whereafter our company will issue you with a clearance certificate. This certificate expunges past negative debt information listed on your credit bureau report. PBH Consulting is an NCR-Registered & accredited Debt Counselling firm, also affiliated to the NDMA. Our offices are situated in Bergvliet, Cape Town.

Contact: Peter Hill, CEO PBH Consulting Mobile: 084 505 0577; Email: This email address is being protected from spambots. You need JavaScript enabled to view it.