Debtfree May 2017

A PLAN TO PLAN
The Debt Counselling industry is extremely lucky to have a tool such
as DCRS to assist in negotiations between Debt Counsellors and
Credit Providers.
DCRS (Debt Counselling Rules System) is an independent computerised system that assures
that a set of predetermined rules are consistently applied in a proposal for rearrangement of a
consumer’s debts. In terms of the Task Team Agreement, Credit Providers are obliged to accept
a proposal generated through this system. The system allows for generous concessions to be
obtained for the Consumer with an aim of repaying unsecured debt in no more than sixty
months.
It would be great if all consumer’s could be catered for under the DCRS system, but for a variety
of reasons this is not always the case. DCRS is designed to cater for the bulk of Consumers
but there are some special circumstances where it cannot be used. For these circumstances a
different sort of plan is needed.
ESCALATIONS AND CASCADES
Escalation entails the consumer paying a little more each year while cascading entails using the
released affordability from one debt been paid off to accelerate the payments on the remaining