Immediate Relief

We will notify your credit providers that you are under Debt Review immediately after receiving your application. Once they receive this notification, your credit providers will not be able to take any legal action to repossess or attach your assets. We also give a copy of the formal notice that you are under Debt Review to forward to any credit provider who contacts you.

Affordable Monthly Debt Payments

We negotiate lower interest rates (and extension of repayment terms if necessary) reducing your repayments which allows us to formulate a payment plan that you can afford

One Payment

We arrange a direct debit payment from your bank account to a Payment Distribution Agent who will distribute payments to your credit providers and our fees in accordance with the Restructured Payment Plan.

Freedom

After making your final payment under the Payment Plan, we will issue a Clearance Certificate discharging you from all of your debts. We will also notify Credit Bureaus to update their records resulting in a clean credit record. At this stage, you will be able to apply for credit again.

Anyone can apply for Debt Counselling pursuant to National Credit Act. However for the Debt Review process to progress to us formulating an affordable repayment plan for your credit providers, we will need to determine that you are over-indebted i.e. your expenses exceed your income.

Consultation and Application

After completing our contact form, an experienced Debt Counsellor will call you to have an in-depth discussion of your financial situation. We will send you an application form to complete and return to our office with the supporting documents. After receiving your application, we will assess your financial situation and notify your credit providers that you are under Debt Review.

Am I Required to Attend an Interview/Consultation with a Debt Counsellor

You are not required to attend an interview/consultation in person. We can arrange everything by phone and e-mail. If you prefer to meet us in person, we are happy for you to attend our office for the consultation.

How Long Does the Process Take

The Debt Review period lasts 60 business days (approx. 3 months). We are required to determine whether you are over-indebted within 30 business days of the application and to obtain a Court Order for the Restructured Payment Plan within 60 business days.

Are all of my Debts Included in the Application

All credit agreements, home loans, vehicle finance, credit cards, overdrafts, store cards, personal loans and micro-loans will be included in your application.

I Am Married, is my Spouse Required to Apply

If you are married in community of property, you and your spouse are classified as one estate under the National Credit Act and therefore you are required to lodge a joint application.

Will I Lose My Assets Under Debt Counselling

Your assets including your house, car and furniture are protected under Debt Counselling. Your credit providers may not exercise or enforce any legal recovery action against your assets.

Will I Still Be Able to use Accounts and Credit Facilities

No. After receiving notification that your are under Debt Review, your credit providers will block the accounts from further use.

The Debt Counselling Process is not free however our costs are reasonable and regulated by the National Credit Act. The current fees are listed below.

1.1. An application fee, limited to R50.00, recoverable directly from the consumer upon receiving an application for debt review.

1.2. A rejection fee of R300.00 (excluding VAT) in respect of consumers whose applications have been rejected in terms of section 86(7).

1.3. A restructuring fee of the lesser of the first installment of the debt re-arrangement plan or a maximum of R8,000.00 (excluding VAT), in respect of a consumer whose applications have been accepted in terms of 86(7) (b) or 86(7) (c). (Should a joint application be required, the fee can be increased to a maximum of R9,000.00 (excluding VAT).

1.4. A monthly after-care fee of 5% (excluding VAT) of the monthly installment of the debt re-arrangement plan up to a maximum of R450.00 (excluding Vat), for the entire debt counselling process.

1.5. A legal fee for a consent order of R700.00. If the consumer’s affairs cannot be resolved through a consent order, and there are additional costs for further legal processes, these need to be separately negotiated with the client.

I am in Arrears on my Accounts

If you are no longer able to pay your debts on a monthly basis but you have not yet received formal notices from credit providers, we recommend that you contact us to discuss your financial situation and how you may benefit from Debt Counselling.

I Have Received a Letter of Demand

You have 20 business days from the date of issue to apply for Debt Counselling. You should urgently contact us to assess your financial situation.

I Have Received a Summons to Court

Your credit provider is required to issue a final warning (section 129 notice) giving you have 10 business days to apply for Debt Counselling before they can issue a Summons to Court. If you fail to apply in this timeframe, the debt cannot be included under Debt Counselling.

I Have a Garnishee Order Against my Salary
We cannot include the amount subject to the Garnishee Order in your Debt Counselling application. However, we will review their legitimacy and whether they can be revoked.

We will negotiate with your credit providers directly to reduce your interest rates or extend your repayment terms which will result in lower monthly payments.

Who Do I Pay after my Debts are Restructured

You will only make one payment each month to a Payment Distribution Agency (PDA) who are regulated by the National Credit Regulator. The PDA will ensure that the correct amount is paid to each credit provider and also pay out fees on a monthly basis in accordance with the Restructured Payment Plan. We regularly review the PDA distributions to ensure that no credit provider is paid incorrectly.

How Much do I Pay Each Month

Your monthly repayment amount is based on your Restructured Payment Plan and is essentially what you can afford to pay leaving sufficient funds to cover your day to day living expenses.

Can Creditors Refuse the Repayment Proposal

Yes, the credit providers can reject the repayment proposal however they will accept most reasonable offers. In the event that they reject the payment proposal, we will make an application for an Order to the Magistrates Court. This application falls under the Debt Counselling process.

Am I Required to Attend Court

No, we will be the applicant in the matter and attend court on your behalf. We will notify you of the outcome soon after judgement is passed.

How Long Will I Remain Under Debt Review

Debt Review lasts for between 3 and 6 years for most consumers. The length of Debt Review varies from person to person depending on a number of circumstances. Any reduction in interest rates reduces the repayment period however we may have to extend repayment terms on some debts to reduce the monthly payments to an affordable amount.

After your final payment, we will issue a Clearance Certificate and notify Credit Bureaus and your credit providers that you are no longer under Debt Review.

Can I Apply for Credit While I Am Under Debt Review

No. We will notify Credit Bureaus that you are under Debt Review and credit providers will become aware of this when they obtain a Credit Report for your credit application.

Will I Be Listed on Credit Bureaus

Yes. After submitting an Application Form to our office, we will notify Credit Bureaus that you are under Debt Review.

Will I Be Able to Obtain Credit Again

Yes, but only after you have made all payments under the Restructured Payment Plan. After your last payment, we will issue a Clearance Certificate and notify Credit Bureaus to update their records and remove “Under Debt Review” from your profile.

Will I Be Black-Listed If I Apply for Debt Review

No. We will not black-list you however Credit Bureaus will be notified that you are under Debt Review and add a flag to your profile so that potential credit providers know that you are under Debt Review.

When Will I Be Removed from Credit Bureaus

We will instruct Credit Bureaus to remove “Under Debt Review” after you have made your final payment under the Restructured Payment Plan. At this stage, you will be able to apply for credit again.