I need to get out of debt counselling. Is it a correct procedure to negotiate directly with the bank, then give a 30-day notice to the debt counsellor once all has been agreed with the bank?
What is the cheaper way of paying the debts thereafter, i e debt consolidation or pay per account?
Nicky Campbell, consumer law expert and MD of the SA Law Centre, responds:
Firstly, you have to inform your debt counsellor that you wish to terminate the debt counselling process. The debt counsellor will then issue a clearance certificate.
Prior to doing so, you should approach each of your creditors and advise them of the intention to terminate the debt counselling process.
Generally, most creditors are delighted to hear this and are more amenable to negotiating reduced payment arrangements directly with the consumer.
Debt consolidation does come at an additional cost, so I would not recommend it as a first choice.
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