What is debt counselling?
This is a debt relief measure available to all consumers in South Africa which is provided for in the National Credit Act. The process is designed to assist consumers who are over-burdened and struggling with their debts through budget advice and negotiating with the credit providers for reduced payments and restructuring of debts. The idea is to give consumers financial power whilst allowing them to have a fiveyear plan to settle and pay off all their debts in approximately five years
Why make use of Debt Counselling?
Debt counselling allows for the formulation of a new and affordable repayment plan which is acceptable to all credit providers basing on the National Credit Act to help over-indebted consumers meet their monthly obligation.
How long does the debt counseling process take to finish?
Debt counselors’ work around a 5-year period as prescribed on the national guidelines, however the actual time frame depends on how much extra money the client is willing to pay towards his or her debts, the level of debt and interest rates payable by consumers. It is important to note that consumers are allowed to make extra payments towards their debt counseling to shorten the time spent under debt counseling.
Is it possible to rent a property when I am under Debt Counselling?
Yes, it is possible to rent a property, renting is different from taking a new credit agreement. To facilitate with the issuance of a lease, your debt counsellor will provide a letter to the responsible agencies or landlord indicating that the rentals payable is catered for in the budget and therefore the consumer will afford it.
How does Debt counselling affect my insurance policies?
This will not have an impact at all as these policies are not credit agreement. Insurance policies will be catered for on your monthly living expenses (budget) so that you will have the abilities to pay for the policies yourself
What happens if my credit providers reject my new instalments?
Credit providers may reject the proposed debt repayment plan. However, a debt counsellor will do their best to formulate a new payment plan for the credit providers. Should this not be successful we refer the matter to the Magistrate’s Court for further examination and final decision making.
As a consumer, is it as requirement that I appear in court?
It is not necessarily a requirement that a consumer appear in Court because the debt counsellor is the one considered as the applicant and whilst the consumers are regarded as a respondent. As a consumer your will, be notified of the court proceedings and outcome. Should the magistrate request your presence which is highly unlikely though, it would merely be to establish certain facts. You will not be questioned by any attorneys or anything like that, because this would be merely a court application and not a procedure that requires action
Will you notify my employer of my debt review application?
No. we treat the client’s application in strict confidentiality, and we do not make phone calls at work unless requested by the client
Do I have to attend an interview for me to qualify for debt counselling?
No. The assessment is completed online or telephonically unless if the client wants to complete the application at our offices