You will receive immediate relief from Creditors. During the first 60 working days of the application, creditors may not take any action against you. In this period of time – your Debt Counsellor will prepare the final repayment plan to all Credit Providers.
No. As soon as you are under Debt Review, your Debt Counsellor will inform all creditors that you are in the process. From that point – your Creditors must, by law, work with your appointed Debt Counsellor. If and when they do contact you, refer them back to your Debt Counsellor.
It is not a credit agreement and therefore you will be able to rent whilst under Debt Review. In most cases, you may need a letter from your Debt Counsellor to confirm that the amount is made available from your surplus.
No. You will need to earn a monthly income that a Debt Counsellor can use to distribute between all of your Creditors.
You should look at the Debt Review process as a way of turning your life around. It is a proactive step in dealing with serious indebtedness before any legal process takes place.
For this reason, you should re-look at your budget, not only whilst under Debt Review, but also into the future when all debt is paid off.
Once your debt is paid off, you should be careful not to get back into debt and start the cycle again.
Use the surplus you now have (the money you were previously using to pay off your debt) to save. It is far better to have savings then debt.
A Certified Financial Planner is a professional who will be able to assist you with holistic financial planning to ensure you stay on track with your financial goals.
Financial Wellbeing is that state of being wherein a person is making the most efficient use of financial resources, is in a position to absorb any financial shocks, is on track for meeting current & future financial goals, and has a feeling of peace & satisfaction about financial life.
Financial Wellbeing can be achieved by any individual / family irrespective of their income level or wealth level.
Instituted in June 2007 with the implementation of the National Credit Act, Debt Counselling (also known as Debt Review) is a highly effective debt repayment solution focused on helping over-indebted individuals to meet their commitments in a way that suits both their Credit Providers and their pocket. Apart from the fact that it reduces stress it offers protection against legal action from Credit Providers and the everlasting effects of being placed under Administration. It also provides individuals with a way to repay their debts while ensuring that they still have the ability to meet daily living expenses. In short, if you are struggling to meet your monthly repayments and face possible legal action, Debt Counselling could offer you the solution you need.
Debt Solution SA are pioneers and market leaders in Debt Review.
Debt where legal action has not commenced can be included when you apply for Debt Counselling. All debt has to be included when you apply for Debt Review. Certain contracts such as Gym cannot be included in Debt Review and normally this repayment is included in your budget.
When we do the assessment we will provide advice on all your obligations.
A Debt Counsellor may act as a bridge between you and your Credit Providers in order to alleviate financial stress. A Debt Counsellor must assess if you are over-indebted or if any of your credit agreements are reckless. He/she will use the information provided by you, but will also verify the information with the Credit Providers and a Credit Bureau. A Debt Counsellor is qualified, registered and regulated by the National Credit Regulator.
- The aim of Debt Counselling is to repay your debt in a structured way.
- Debt Counselling does not provide you with a payment holiday.
- You must make payments every month from the first month you apply.
- During the debt repayment period your name will be listed with the Credit Bureau as being under Debt Counselling. During this period you will be unable to take on new debt.
- Once this process is completed you should be able to access responsible, new debt if required.
- It is best to ensure that you do not miss any repayments as this will mean that the process is cancelled by your Credit Providers and this allows them to commence with legal action.
- We understand the Debt Review process well and our specialists will guide you through every step of the process.
The National Credit Act has laid down the following requirements:
- Once your have applied we need to advise your Credit Providers, review your budget, structure a repayment plan and refer the matter to Court within 60 business days.
- Obtaining of a Court Order on your behalf provides the rightful protection as allowed in the NCA.
- You can make a single payment every month and the Act allows you to increase your payment if and when you can afford it.
- As soon as you have repaid your short term debt and you are left with your bond you can apply for a Clearance Certificate.
- The length of time it takes to repay your debts will vary depending on your unique situation but the majority of Debt Solution SA Clients repay their debt in a shorter period than planned.
The benefits of Debt Counselling are:
- No additional charges to consider – Debt Counselling fees are included in your monthly repayment.
- One affordable payment per month, which is lower than existing installments. If you qualify for the industry concessions your fees and interest rate can be reduced and this will reduce your repayment.
- This payment makes provision for essential living expenses so you can breathe a little easier.
- As long as you maintain your repayment you enjoy the protection of the Act.
- The cost of this process is much less than that of Foreclosure, Administration, Garnishee Orders and Sequestration.
- Although a repayment period is defined you can, without penalties, increase your payment and this will reduce the Debt Review period. This means that you can control and reduce the Debt Review period.
- No need for further financial stress and at the same time gain relevant debt management skills to ensure sustained financial rehabilitation.
If you are not able to make your monthly payments, your bills are piling up and you don’t have enough money left to live on, then you will benefit from seeing a Debt Counsellor.
If you are not sure contact us for a free assessment.
You qualify for Debt Counselling if:
- You are struggling to pay your current debt on time.
- You do not have sufficient funds to pay debt after your essential living expenses.
- You are most likely unable to pay future debt should you acquire further credit.
- The restructuring of your debt enables you to repay your debt within a reasonable period of time.
Most people, at some stage of their life, have acquired debt. It’s how you deal with and manage your debt that makes the difference.
Maybe you lost your job, experienced a medical issue that resulted in a massive medical bill or you overspent on your credit cards, whichever the reason, it’s best to tackle debt early on.