1) What is Debt Counselling?
Debt Counselling is a solution for over-indebted consumers that ensures sufficient protection against loss of assets and assists with the restructuring of debt so that the consumer can meet his / her basic living expenses.

 

2) What is the purpose of a Debt Counsellor?
Debt counselors operate under license from the NCR (National Credit Regulator) and their purpose is to provide a solution by restructuring payments so that the client can meet his / her basic living expenses.

 

3) Will I be black-listed if I apply for Debt Review with a Debt Counsellor?
No. There is no black-listing but if the Debt Counsellor finds the consumer to be over-indebted, they will add a flag to the consumer's credit record asking creditors not to lend the consumer money because he or she is already over-indebted. This will be removed once the debt has been repaid and when the consumer is no longer over-indebted.

4) Can I still go under Debt Review if I have been black-listed by a creditor?
Yes, you can be placed under Debt Review at anytime, provided a Debt Counsellor has declared you over-indebted.

 

5) How soon will I be under Debt Review?
Immediately after speaking to the Debt Counsellor provided that all relevant documents are submitted to us.

 

6) What proof will I have that I am under Debt Review?
You will be issued with a letter to this effect from the Debt Counsellor.

 

7) What accounts can be included in a Debt Review process with a Debt Counsellor?
All credit agreements can be included but not lease agreements or service agreements such as utility bills or cellphone contacts. Any accounts on which judgment has been taken cannot be included.

 

8) Can I apply for credit while under Debt Review with a Debt Counsellor?
No. – Not until you issued with a clearance certificate.

 

9) Will I still be able to use accounts and credit facilities?
No, once notification has been given to the credit providers, the accounts will be blocked from further use.

 

10) If I have additional cash, can I pay the creditors directly?
No, there is a restructuring plan, in place. The consumer must contact the Debt Counsellor to make arrangements.

 

11) I received a letter of demand from one of my creditors, what happens now?
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.

 

12) What happens if a credit provider does not accept a repayment plan?
The Debt Counsellor can calculate a new proposal or refer the matter to the Court for a decision.

 

13) What happens after I have paid up all my debt?
You will be issued with a clearance certificate.