*Debt Counselling: is where a Debt Counsellor restructures instalments to allow the consumer to pay his or her debt and meet his / her basic living expenses. Debts are paid monthly.
*Administration: is a legal process, where the instalments are reduced, but creditors only receive payment every three months and the term of repayment is much longer than under Debt
Counselling. Debt must be less than R50 000 to qualify.
* Liquidation: is a legal process where assets are sold to try and lessen the debt and the Court will appoint somebody to manage your finances. This is costly and you will be blacklisted for 30
years or until the Court declares you as rehabilitated.
A consumer can obtain a report about their credit rating free of charge once a year by calling, Experian 0861 10 5665, Transunion 0861 482 482, Compuscan 0861 51 41 31.
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.
The Debt Counsellor may refer the matter to court for a declaration of reckless lending and the court will then decide what action to take.
All credit agreements can be included but not service agreements such as water and lights accounts or cell phone accounts. Any accounts on which judgment has been taken cannot be
included.
Service accounts cannot be included under debt review. This means that cell phone contracts, child support, water and electricity, RENT, DSTV contracts, and school fees cannot be included
under debt review.
You can apply in conjunction with your Debt Counsellor for a consolidation loan to the relevant institutions but this tends to only be granted in extreme cases.
It is already a Court Order and only a Court can make a change to the Court Order.
Yes. The creditors cannot take legal action for 60 business days after you apply for Debt Review but you must continue to make payments, because if your application is unsuccessful, you will
be in default and the creditors can take legal action after those 60 business days.
You will be issued with a letter to this effect from the Debt Counsellor.
After the client has successfully applied for Debt Review and the Debt Counsellor has notified the credit providers.
You have less than 20 days to see a Debt Counsellor for help.
No, although he/she can contact a Debt Counsellor for advice on how to manage their money better and various options will be discussed.
No, once notification has been given to the credit providers, the accounts will be blocked from further use.
No, there is a restructuring plan, in place. The consumer must contact the Debt Counsellor to make arrangements.
Debt Counselling is a solution for over-indebted borrowers 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
The purpose of a Debt Counsellor is to provide a solution by restructuring payments so that the client can meet his / her basic living expenses.
The Debt Counsellor can calculate a new proposal or refer the matter to the Court for a decision.
Yes, the consumer can phone the credit bureau and request that the information be amended or approach a Debt Counsellor for assistance.