[box] FAQ Reduce Debt

What is Debt Review/Debt Counsellor?

Debt review is the process whereby a debt counsellor assesses your outstanding debts, speaks to your credit providers on your behalf and assists you in establishing an affordable monthly payment plan that covers both living and debt expenses.
Debt Counselling was formally introduced by the National Credit Act to help over-indebted consumers, especially in the current economic crisis. The goal of Debt Review & Counselling is to put a repayment plan in place, which is affordable, as well as acceptable to all your credit providers. This process is here to help you, so why not make use of it and get on the path to becoming debt free?

Do you really need Debt Counselling?

The mere fact that you are reading this means that you will most probably benefit from our Debt Review process and that you are in a financial situation that is causing you worry. The earlier you come to us, the easier it will be to for us to find the best solution for you. You can only benefit from contacting us.

How long after signing up will it take for me to get debt relief?

You will immediately experience the relief that Debt Review offers. Within the first 5-7 days, we will work out a provisional repayment plan for you that you’ll be able to comfortably afford. In terms of the repayment plan, you will make a single payment to a Payment Distribution Agency, who will distribute the money according to your plan. During the first 60 working days, your Credit Providers will not be allowed to take legal action against you. During this time, we will prepare your final repayment plan.

How can I afford the fees when I already have cash problems and am in debt?

Our fees are regulated by the NCR (National Credit Regulator) and are very affordable and reasonable, as the idea is to get you out of debt, not to worsen your situation. Everything including the fees will be explained to you in detail once you contact us. The most important thing to remember here is that our fees and disbursements are included in your affordable debt repayment plan.

Can you cover all my debts like loans, debt or credit card finance for instance?

Only credit agreements that are defined under the National Credit Act may be included in the debt review process. Accounts, for example, like medical bills and cell phone accounts, are excluded. Also, please be aware that if legal action has already been initiated by your credit providers (prior to your application for debt review) or if you have a judgment and/or garnishee order(s), we cannot offer you debt review unfortunately.

What happens if I miss my monthly repayments?

If you miss a monthly repayment while you are under debt review, your credit providers will terminate the process and start legal proceedings against you, which will include judgments and garnishee orders. If you are struggling to make your monthly repayments, contact your debt counsellor immediately, so they can advise the credit providers of your situation and work out a more affordable debt repayment plan.

How long will I need remain on Debt Review?

It is different for everybody, as every individual’s situation is unique. In order to lower your monthly instalments, we have to extend your repayment term. In some cases, we may manage to convince Credit Providers to also lower your interest rates, which means that your repayment period will not be extended too far into the future.

Your debt repayment plan will indicate exactly when your last day of payment will be. If you, however, manage to get a substantial salary raise or inherit a lump sum of money, for instance, and you are in a position to pay off all your debts at once or make a better payment arrangement with your Credit Providers, you can contact us and we will end your Debt Review on your instruction, and inform the Credit Bureaus to remove the Debt Review flag next to your name.

What happens if my credit providers do not accept the terms proposed to them?

If your credit providers do not accept the terms we propose to them in your new repayment plan, we will revise the terms and attempt to renegotiate with them, until we reach a compromise. However, if they are unreasonable, we will be able to take the payment plan to court and request that it be declared as an order,  as enforced by the National Credit Act. This, however, rarely happens as the credit providers want you to pay of the debt so they will agree to any plan whereby they can achieve this.

What are the costs involved?

Our fees are regulated by the National Credit Regulator and are very reasonable, as our aim is to get you out of debt. The fees will be explained to you in detail, once you contact us. The important thing to remember here is that our fees and disbursements are included in your affordable debt repayment plan, and we will always make sure that you are able to afford you living expenses as well as your monthly instalments.

I have heard some negative rumours about Debt Counselling, does this process really work?

Debt Counselling changed a good deal since it was started in 2007 by the National Credit Act. As is usually the case with new legislation, all the grey areas in the Act had to be found and worked through in court in order to have the process run smoothly. We are now assured that the industry has already reached the point where Debt Counselling is now functioning the way it was supposed to.

We have successfully helped hundreds and hundreds of people since the beginning and we are happy to see that more and more people are realising that the system is working. So the answer is yes, the Debt Counselling process works.

In a few cases there were some bad eggs in the industry in the form of Debt Counsellors who had no morals and were in it just for the money, not to help people. Most of these types have thankfully been worked out of the system, ensuring a respectable industry that helps thousands of South African’s with their financial troubles.[/box]