What is debt counseling? Are there different types of debt counseling? And does St. Humentum offer debt counseling?
Debt can be very problematic. Creditors send reminders, a bailiff is at the door or you may be evicted from home. In that case, debt counseling or debt rescheduling is a possible solution.
For debt counseling Income, expenses and debts are managed by a debt counselor. The goal is to pay off debts as quickly as possible. First of all, an overview is made of income and expenditure. Then a budget is drawn up that is used as living allowance. The amount that remains is paid monthly by the debt counselor to the creditors. This process can take up to three years, depending on the amount of the budget and the debts. The debt is paid off 100%.
Is 100% payment not possible within three years? Then the debt restructuring outcome. In debt restructuring, you will be faced with a Free To Let Amount (VTLB). This is a legally determined amount that you have left over as a 'savings bank' to pay for your daily groceries and fixed costs. You then live on social assistance level. The debt rescheduler has calculated that it is impossible for you to pay off all debts in 3 years. He / she therefore makes agreements with the creditors about the amount to be paid and makes a proposal to pay off the debts in three years against final discharge. This process may last a maximum of 36 months (or 3 years). After 3 years, the remainder of the debts will be canceled.
At St. Humentum there are plenty of Budget coaches who support you in the debt relief or debt restructuring process. For example, by jointly investigating whether expenditure can be reduced.
Mind you, the Budget coaches are not debt counselors or debt reschedulers.