What are the Questions that most of our clients ask us with regards to Debt Counselling?


Which Debts can be included?

All credit agreements with credit providers.

This includes :

  • Secured Debts :
    • Home loans
    • Vehicle Finance
  • Unsecured Debts :
    • Credit Cards
    • Store Cards
    • Personal Loans

Excludes service agreements such as water and lights accounts, as well as any accounts in which judgement has been taken.

 

Can you apply for Debt Review if you are unemployed?

No.  If you do not have an income, you have no money to restructure for your payments back to the creditors.

 

Do I have to have a home loan?

No, you dont.  It makes no difference.

 

Will I be listed on the Credit Bureaus?

Yes, all Credit Bureaus and Credit Providers will be informed that you applied for debt review. However, this is NOT a blacklisting, but a flag on your credit record, informing Credit Providers that you are over-indebted and that they shouldn’t lend you any further money or open any new accounts. This is removed once your debts have been repaid.

 

Do I continue paying accounts?

Yes. You have to continue making payments, as per the recalculated amounts by the Debt Counsellor.  Debt Counselling is not a payment holiday.

 

Can I continue using my credit cards?

No.  You will have to stop using all your credit facilities until all your credit debt is paid up.   We will arrange for your accounts to be paid back as per our ongoing discussions with you and your creditors.

 

How long does it take before I am under Debt Review?

From the moment you sign the application form (Form 16).  The day you apply for Debt Review, gives you 5 days to get your paperwork to us and for you to complete and sign our Application Form (Form 16 as we all know it).

 

What if I have received a letter of demand?

A letter of demand usually informs you that, according to section 129 of the National Credit Act, you have a certain amount of days to see a debt counsellor, to prevent legal action.  If you receive such a letter, you need to contact us with urgency to avoid you being black listed.


What if the credit providers dont accept the proposal?

The Debt Counsellor will calculate a new proposal, if possible, or refer the matter to the Court for a decision.

 

Can credit providers change their minds after the debt repayment plan have been finalised?

No, as long as you do not default on the arrangement.  Should you miss 1 payment without having notified the Debt counsellor, you can place your entire credit profile at risk.


Contact us now, and we will explain to you how the National Credit Act has been amended to protect and assist you.

  1. Apply for Debt Counselling Online Click Here
  2. sms ‘Debt Free’ to 39133
  3. call our National Debt Counselling Call Centre 0861 000 748
  4. Visit our Debt Counselling Blog for an office near you.
  5. Follow us on Twitter for daily updates in our world.