Debt Review (Debt Counselling)
The profession of Debt Counselling was created by the National Credit Act, 34 of 2005. Debt Counsellors are registered in terms of section 44, 45 of the Act, subject to the conditions set out in Sec 46-49 of the Act.
Upon successful registration a Debt Counsellor is authorised to practice as such i.t.o. Sec 50 of the Act
You may apply to a Debt Counsellor in the prescribed form:
- To have yourself declared over-indebted; (Calculation made by Debt Counsellor)
- To restructure your credit agreements by reducing your monthly instalments by up to 60%
- The Debt Counsellor will issue a repayment proposal to your creditors and negotiate lower instalments and attempt to negotiate lower interest rates and cost of credit as well.
- To refer the matter to a Magistrate’s Court to have the repayment proposal made an order of court so that you are completely protected against any legal action. You do NOT need to go to court. Your Debt Counsellor will handle the matter on your behalf.
In summary, the Debt Counsellor is authorised upon receiving an application from a Consumer to rearrange the consumer’s monthly commitments in order to facilitate affordable repayment of the Consumer’s debt. The Consumer is required to comply with all reasonable requests from the Debt Counsellor and to make available all necessary personal information to the Debt Counsellor required for a successful restructuring of the Consumer’s debts.
Debt Review
Debt review, otherwise known as debt counselling, is a debt solution targeted at South African consumers who are over indebted and struggling to manage their finances. … Debt review is the process whereby a debt counsellor assesses a client’s outstanding debt and implements a restructured debt repayment plan.
Process: Get out of DEBT in 5 easy steps
1 – Consultation
Book a consultation with your Debt Counsellor, either in person if you are in the Bloemfontein region or telephonically if you are not. Debt Counsellor will travel to come and see you in the comfort of your home.
2 – Application
Complete the application form provided by your Debt Counsellor and sign the included forms
3 – Processing
Debt Counsellor will get to work contacting your creditors and loading your application on the system.
4 – Restructuring
After calculating that you are over indebted, the Debt Counsellor will notify you and your creditors that your application have been accepted and will communicate your new reduced instalment agreed by you to your creditors.
5 – Get back to living your life
You start paying your new reduced and affordable instalment every month without having to stress about harassment, legal letters, accounts being handed over ect. After your debts are paid up or if your circumstances changes so that you are no longer over indebted, you apply to have the process cancelled and you will have access to credit again.
