Questions about debt counselling
When you consider debt counselling you might have some Questions about debt counselling
There are a few standard questions that we always receive and we will list them here.
If however you have specific questions regarding debt counselling and debt review, please feel free to contact us. We will gladly assist you with all the information you need in order to make an educated decision towards your financial future
Debt counselling is a pretty straight forward application, but you still need to know all the details
Please read through the Questions about debt counselling and their answers below
Thank you for assisting us with our debt problems. Your reduced repayment plan saved us. Thumbs up!!
No more calls from creditors and spare money at the end of the month. I am glad I decided on Debt review
My car was about to be repossessed and you stop it. Thank you for your fast and friendly service
Baie dankie vir julle vinnige en professionele hulp. Ek kan nou weer asem haal terwyl ek weet my skuld word betaal.
I did not know where to turn to. Debt was swallowing us. Thank you for assisting us so fast
More Questions about debt counselling
If you are married in community of property, you and your spouse must apply for Debt Counselling
together, as the law sees your joint estate as one single estate.
If you are married with an ante-nuptial contract, you can apply for Debt Counselling on your own. Your
application will only cover your own income, assets and debts, but you must disclose if any of your
assets or debts are jointly owned, i.e. not just in your own name.
Traditional African marriages are regarded as being in community of property, while Islamic religious
marriages are regarded as being out of community of property.
Your credit report will show that you have applied for debt review until a clearance certificate is issued.
If you withdraw / your application is terminated / cancelled, this will be shown on your credit record for
6 – 12 months.
When all your debts are paid, a clearance certificate can be issued, and all history of Debt Counselling
will be erased from your credit report.
Yes. There are four ways that you can exit the process:
* You can choose to voluntarily withdraw from the process at any time.
* Your Debt Counsellor can cancel your application if you are dishonest, don’t disclose all your financial
details or fail to follow instructions or advice.
*Your Debt Counsellor can also reject your application if your affordability installment is too low to
create a reasonable proposal for your credit providers.
* Your credit providers can terminate debt counselling if you fail to make payments according to the
final proposal, if your credit providers are dissatisfied with the amount you can afford to pay or if the
requirements of section 86 of the National Credit Act are not met.
NB – Once you have exited the process, your credit providers can immediately take legal action against
you for the full outstanding amount owed to them.
No. You cannot and may not apply for any further credit while under Debt Review. This means you
cannot use your overdraft, credit cards, retail accounts or any other type of debt. If you apply for further
credit while under Debt Review, your application will be cancelled.
No. Although you cannot afford to pay the full installments on all your debts, you must make reduced
interim payments to all your credit providers each month to show your commitment to repay your debt.
It is your responsibility to make sure that your credit providers receive payment every month, even once
the PDA starts making payments on your behalf.
Absolutely. You should continually try to increase your affordability, by increasing your income, reducing
your expenses and selling unnecessary assets, to pay off your debt as fast as possible.
If you receive an increase, bonus or any extra income, please let the Debt Counsellor know so that we
can pay extra on your debt. This will make your credit providers more likely to consent to your proposal,
and will help you to pay off your debt faster.
If you have received a letter of demand or Summons for a specific account before you sign this Form 16,
the credit provider can require the account to be excluded from Debt Counselling. If this happens, you
will have to make voluntary arrangements with that credit provider to pay off the debt.
If you have referred the Summons to an attorney, you should inform your attorney that you have
applied for Debt Counselling.
To avoid double payments when the PDA starts making payments on your behalf.
Also to avoid any of your credit providers deducting more than the amount allocated to them in the final
proposal, and not leaving enough for the remaining credit providers. This does not apply to debit orders
for debts that cannot be included under Debt Counselling. Please follow up with your bank to make sure
that your insurance and other policies will continue to be paid in full.
To avoid “money grabbing” or “set off” by the bank. While you are under Debt Counselling, you will not
be able to access any overdraft facilities. Therefore, if your salary is paid into an account with an
overdraft, your salary could be “set-off” to the full amount owed. If your salary is paid into a savings
account, you can pay off your overdraft in smaller installments.
Should you keep paying your full insurance premiums?
Your home and vehicle must be insured. This is often a condition of your financing contract. You must
keep paying the full installment for insurance and other policies, even while you are under Debt
Counselling. The same applies to your rates and taxes as well as maintenance and services for your
According to the National Credit Act, you should have a payment plan and a Court Date within 60
working days (about three months). The actual Court Date will depend on the specific Court.
Paying off all your debt depends on how much you make available to pay. You should be able to pay off
your debt between five to seven years if you don’t have a house or car, and 10 to 30 years if you do.
What happens when the Court considers your final proposal?
The Court will consider whether all the steps in terms of the National Credit Act were taken. They will
also consider whether they feel the final proposal is a reasonable solution for all parties. If your credit
providers oppose the Court application, they will have to consider the credit providers’ arguments, and
request certain changes before they can make an order.
Once the Court has made an order, it will be binding on both you and the credit providers. This means
that your credit providers must accept payments as per the Court Order, but it also means that you
cannot miss any payments, or your credit providers will immediately be able to get a garnishee order
against you or repossess your assets. Once the Court has made an order, you will not be able to
withdraw from Debt Counselling.
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