FAQ – Frequently Asked Questions

/FAQ – Frequently Asked Questions
FAQ – Frequently Asked Questions2018-01-03T15:14:37+02:00
Debt counselling is an important part of the debt review system. As the go-between for the consumer and the creditors, a debt counselor ensures that all parties are understood… Read More
To be over indebted is to have more debt than you could possibly pay – your debt monthly is more than your income monthly. You can also be classified as over indebted if you are in arrears on three payments or more, for a certain amount of time – usually three months… Read More
All debt review cases must either go to a Magistrate’s Court or the National Credit Tribunal, as per the National Credit Act. There is the possibility that a client might need to be present, but in most cases this is not necessary. Please do not worry about this, we will be with you ever step of the way.
If or when a creditor gives a consumer financial credit without conducting the correct affordability assessment, or if they know the consumer cannot afford the debt, the credit is considered reckless credit and can be written off by the courts… Read More
No. All your information is treated with the utmost confidentiality. We will not contact your office or anyone unless instructed to do so by you.
No, we do not, as this would not help your situation. Our goal is to get our clients debt free. Further loans will definitely not solve your financial problems. More debt will make your situation worse, not better.
No, unfortunately not. The law stops you from acquiring any more financial credit while under debt review to protect you. You will need to destroy all of your retail cards and you will not be allowed to use your credit cards at all.
Section 88(1): “A consumer who has filed an application in terms of Section 86(1) for debt review must not incur any further charges under a credit facility or enter into any further credit agreement”.

This is correct – both parties in the relationship will need to submit paperwork to determine family income and the level of debt of the household.

According to the National Credit Act, your creditors are legally prevented from hassling you, as soon as we notify them that you are under debt review. However, sometimes it can take a bit of time for Creditors to inform all of their departments that you are under debt review, so you may have to be a little patient. Your Debt Counsellor will go over this with you and coach you on the best procedure to follow, should they contact you.  Simply let them know that we are your Debt Counsellor and that we are acting on your behalf if they call you.
Married in Community of Property (COP): both your own and your spouse’s income and expenses must be calculated in a joint application, and both parties’ debt must be included for consideration.

Married out of COP: generally, a single application will need to be written for the over-indebted party, who is applying for debt review. But a joint application for debt review can be submitted, if both parties agree that they need it. In this case, both parties will be placed under debt review and then their statuses updated at the credit bureaus.

Married Antenuptual Agreement: only the over-indebted spouse needs to apply for debt review, although a joint application could be applied for if both parties need and agree to this.

Traditional Marriage: the application for debt review will be the same as a couple married in COP.

Living together: a joint application process can be entered into by both parties if warranted

While you are under the Debt Review process, a flag indicating that you are under Debt Review will be added to your name at the Credit Bureaus. Once you have completed your debt payment plan in full, we will contact the Credit Bureaus and inform them of this, and they will erase the flag from your file, thus, removing any notices that you were ever under debt review.

If you do not apply in the first place, this could make your situation much worse. If you skip or miss your monthly instalments on any of your Credit Agreements, these will be listed as non-payments. This must be avoided at all costs!

Once you have paid all of your debts off, there will be no record kept on your file at the Credit Bureaus. So, with this in mind, if you would like to be able to apply for credit in the future when you are back on your feet again, Debt Review is the way to go, rather than trying to handle your Credit Providers all on your own, which clearly is not working for you right now.

The moment you are no longer in arrears and have paid off most of your debt, excluding bonds, the Debt Counsellor can remove you from debt review and notify the credit bureaus that you are no longer under debt review or over-indebted. Even if you are still paying off your bond, the fact that your unsecured debt is paid off means you are in a financially sound position.
You can find more information on the National Credit Regulator (NCR) on their website at http://www.ncr.org.za/ For more information about the National Credit Act (NCA), download the Act at http://www.ncr.org.za/act/download-the-act
Why use a debt counselor? Fulfilling the function of a mediator, a person in this position plays an integral role in the debt review or debt solution process… Read More
When your debt is paid off under debt review you will receive a letter of clearance. This states that all needed documents have been received by your debt counselor and you have officially been cleared of your debt review status… Read More
As a formal debt process, debt counselling and all related costs are monitored by the National Credit Regulators, guide by the National Credit Act. With payment on a month to month basis, the amount I set according to your situation and financial allowance, this is calculated by how much you owe and how much you can afford to pay each month… Read More
In short, no. While all debt review cases will go to court at some point or another, the client does not always need to be present unless advised by their debt counselor… Read More
Yes, you can in fact still rent property while under debt review. While it can be tricky in certain situations, this has more to do with reliability and trustworthiness that actual legal guidelines… Read More
Yes. While under debt review you need an income to service your debts. Without money to budget, your debt counselor cannot negotiate new terms and rates with creditors- this is a dire situation… Read More
If you have judgments against your name already, those accounts you defaulted on may not be included in your restructured payment plan as negotiated by the debt counselor… Read More