Debt review in Johannesburg was implemented by the National Credit Act (NCA) as a legal debt relief process. With debt review in Johannesburg, our debt counsellors propose a reorganised debt repayment plan to your credit provider, so that you only have to make one lower payment a month, instead of multiple payments to multiple creditors. Once your creditor accepts the proposed repayment plan, the plan will be declared a legally binding court order.
Thereafter, you will pay one affordable payment directly to a Payment Distribution Agency (PDA) every month – this payment will cover all of your unsecured debts – and the PDA will divide the payments between all of your credit providers. You will make these monthly payments for up to five years, or until all of your debts are settled. Once your debts are paid off, your debt counsellor will issue you with a clearance certificate. The credit bureaus and your credit providers will also be advised that you have completed the process of debt review in Johannesburg.
Accordingly, your credit profile won’t show that you are under debt review, so you will be able to apply for credit once again.