Since The National Credit Act jumped onto the scene in 2007, debt management agencies have flourished and as a result consumers are bombarded with choices when it comes to choosing a debt a management agency that will work for them. Therefore when considering choosing a debt management agency it is vital that the consumer understands what a good debt management agency is.
Firstly when looking for a debt management agency consumers should search for debt management agencies in their area. A quick internet search, or look through the telephone directory should yield plenty of results. However once debt management agencies in the area have been identified the consumer should ascertain whether or not they meet the criteria of a good debt management agency.
This means ensuring that the debt management agency is registered with the NCR. The consumer can either ask the debt management agency to produce proof thereof, or they can contact the NCR and verify this independently. Secondly the debt counsellors employed by the debt management agency should also have received accreditation through the NCR.
Always enquire about fees when contacting the debt management agency. The DCASA has a recommended fee structure listed in its code of conduct and a good debt management agency will adhere to these. Thus always investigate the recommended fee structure and compare it to the fees of the debt management agency.
Consumers should also not ignore the power of word-of-mouth. Therefore ask around, read forums and talk to consumers that have gone through debt management before. This will allow you to gauge the personal service of a debt management agency, as you can always judge a business by what its clients have to say about it.
Article written by: Andrea van Tonder 07-2013