1. What is Debt Review/Debt Counselling?
This is a process where a registered and qualified debt counsellor assesses a clients credit status with the credit providers, should the client be confirmed as over-indebted, a restructured debt repayment plan is implemented, through a process of negotiation with the credit providers to reduce interest rates and decreasing monthly installments.
This rehabilitation process allows:
- An affordable monthly budget and payment plan drawn by a debt counsellor to ensure that client can afford a sustainable means of living
- Stress free life of not having to deal with multiple debt repayments to multiple creditors, as one payment is made to the payment distribution agency which will pay the creditors on the clients behalf
- Client protection by the NCA, therefore creditors are no longer allowed to harass the client with calls and letter of demand for debt repayment.
2. Why use a debt counsellor?
- Unable to meet all your debt repayments every month?
- Taking more credit to pay off your existing debts?
- Being harassed with phone calls and letters of demand from creditors demanding payment?
If YES to the above questions, then you could be in need of a debt counsellor:
A debt counsellor will:
- Assist you to regain your financial freedom
- Legally negotiate with your creditors on your behalf
- Reduce your monthly installments
- Eliminate the calls you receive from creditors demanding payment
- Help you save and budget
- Importantly, help you afford a sustainable financial life
3. Will I qualify for credit once the Debt Review program is complete?
As soon as you are registered for debt review, you will be flagged with the Credit Bereau to notify credit providers that you are currently under the rehabilitation program, therefore during this period you will not be able to apply for credit. However, the good news is once you have completed the program, you will be issued with a certificate of completion and the Credit Bureau will also be notified to remove the flag and there will be no sign that you have ever been under debt review. This will allow you to then apply for credit. But the situation will be worse if you do not apply for debt review, resulting in skipped debt repayments, this will be listed as non payments, resulting in a bad credit score which will deny you credit with creditors.
4. I am unemployed; can I apply for Debt Review?
Unfortunately you cannot apply for Debt Review if you are unemployed. In order to be placed under counselling, you have to have a monthly income so you can still pay your credit providers.
5. How long does the Debt Counselling Process take?
Every client’s case is unique and therefore the period of rehabilitation will differ per client. Remember for the monthly instalments to be lowered, the repayment period has to be extended. We will however be able to determine your period of debt counselling based on the assessment and negotiation with your creditors.
6. Does Debt Counselling involve repossession of my assets including my House and Vehicle?
Not at all, debt counselling will instead help you save and keep your assets, instead of creditors repossessing your assets because you simply cannot afford repayments.
7. Will the “Debt Review” flag against my name with the Credit Bureau affect my job applications in future?
Unlike a negative credit record that will certainly have a negative impact when applying for a new job, Debt Review should not affect you in any way when the new potential employer runs credit checks, instead it should reflect some responsibility in trying to sort out your financial life.
8. I am married in community of property, will my spouse be affected by my debt review?
It depend on the type of marriage you entered into. If you are married in community of property, both you and your
spouse will have to apply. However, if you have an ante-nuptial agreement in place, you are allowed to do a single
application. If you decide not to include your spouse to help repay the debt quicker then they will not be affected by your debt review. However, if there is a joint accounts, like a bond for instance, where the account is on both parties’ names, both parties will be affected.
9. How do I know if I need to be under Debt Review?
- Click on the link below to request for a free assessment (one of our agents will contact you)
- call us on 031 787 3000
- Visit us at 1412 Embassy Building, 199 Anton Lembede, Durban 4000
10. Do I have to visit your offices to register for Debt Counselling?
No you do not have to visit our offices since everything can be done and confirmed via telephone and email