If you are experiencing difficulty making ends meet, you may be considering talking to a Debt Counsellor.

If you can’t cope with your monthly expenses and still pay all your debts then it’s probably a good idea. But before you book that appointment, there are a few things you can do to get organised and make the process smoother.

Get Your Credit Report and Compare It to Your Debts

Start by going online and getting a free credit report from a credit bureau (like TransUnion, Experian, or Compuscan). This will show you what debts are officially listed in your name. Next, gather all your most recent statements from your credit providers. Compare these to your credit report so you can be sure you have a full, clear list of what you owe

Know Your Income and Monthly Expenses

It’s important to know exactly how much you earn (after deductions) as a household, as well as what you spend every month. The debt counsellor will want to look at your entire financial picture. Make a list of your regular expenses such as rent, groceries, transport, school fees, and medical costs. Also write down things you know you should be paying or saving towards but are not at the moment. This information will help a Debt Counsellor work out what you can realistically afford to pay towards your debts.

Learn a Bit About How Debt Review Works

Before you go for your first chat with the debt counsellor, take some time to read up on debt review. Maybe visit the debt counsellor’s website or read the industry magazine (Debtfree) or visit the NCR website (www.ncr.org.za). Understand what debt review is, how it works, how it can help you, and importantly what it cannot do. Once you have this type of basic information it will help you feel more confident, and you’ll be better prepared to ask the right questions when you meet.

Research the Debt Counsellor You Intend to Speak To

Not all Debt Counsellors are the same. Make sure the person you plan to speak to is registered with the National Credit Regulator (NCR). You can check their registration number on the NCR website(www.ncr.org.za). It’s also a good idea to look at reviews or ask others for recommendations to get a sense of their service and track record (of course, it is also good to have a balanced view of such reviews. Read both the positive and negative ones to see what people say).

Prepare a List of Questions

Think about the things you’d like to know before you even think about signing up. Good questions to ask might include:

• Can I see your NCR registration certificate?
• How long will the process take?
• What fees are involved?
• What happens if my income changes?
• Can i get more credit while under debt review?
• Will it show on my credit report?
• What are the benefits?
• How will you help me during the process?

Having your questions ready will help you feel more in control and avoid any confusion later. Maybe take notes during your discussion so you can recall the answers later when in doubt.

Preparing to Succeed

If you take these simple steps before meeting with a Debt Counsellor, it will really increase the chances of finding the right person to help you. And remember, you do not have to sign up right away with the first person you speak to (or at all if you realise it is not right for you).

If you do prepare a little it will not only speed up the process it will also make it a lot easier for the debt counsellor to assess your situation properly. A little preparation now can make a big difference in getting the right support you need to manage your debts.