Debt Review will protect the consumer from losing crucial assets and keep the Credit Providers from taking legal action on accounts that was lawfully included in the debt review. All monthly debt obligations will then be consolidated into one monthly instalment that will cover all obligations under the debt review.
Step 1 - Requirements
Debt counselling is one of the top debt relief measures available in South Africa and provided for in the National Credit Act.
This process is intended to assist over-indebted consumers struggling with debt, through budget advice, negotiation with credit providers for reduced payments and restructuring of debts.
Step 2 - Over Indebtedness Assessment
The Debt Counsellor will do an initial assessment to check that you are over indebted and set up a consultation with you. This could be a face to face consultation at one of our branches or it can be done via telephone, email or fax.
Step 3 - Reduced Payment Plan
During the consultation the Debt Counsellor will verify your budget and your existing debt commitments. A new budget will be agreed and the amount available for debt repayment will be determined. We will also provide you with details of all the costs as well as an interim repayment plan. This is when you officially apply for Debt Counselling and sign all necessary documents.
Step 4 - Negotiation Process
The Debt Counsellor will contact all your Credit Providers as well as the Credit Bureaus to verify your debt. You will also be listed on the Credit Bureaus that you are under debt counselling (not blacklisted). This listing will stay there until you have paid everything off or if you should withdraw from debt counselling, then it will be completely removed. The Debt Counsellor will negotiate a proposal with all your Credit Providers.
Step 5 - Court Process
The Credit Providers may accept the proposals and if all of them do, then a Consent Court Order will be obtained from a Magistrate Court. You do not have to attend the Court hearing, our Lawyer will be handling the Court application. If one or more of the Credit Providers do not accept the proposed repayment plan, the Debt Counsellor will contact you for Counter offer’s to your creditors or submit a proposal to the Magistrate for a decision.
Step 6 - Final Repayment Plan
The Debt Counsellor will provide you with the final repayment plan and Court Order, and this repayment plan is also submitted to the Payment Distribution Agency (PDA). Your copy of the court order must be kept in a safe place, as this is your proof of protection. The aim of this is to collect a single payment from you and ensure that the correct amount is paid to all your Credit Providers on a monthly basis. This will continue until the debt has been repaid, where we will issue you with a clearance certificate.