Q1. What is Debt Review or Debt Counselling?

Debt review refers to a process which is underwritten by law – The National Credit Act No. 34 of 2005. The intension of the law is to assist consumers who find it difficult to meet their obligations towards debt repayments and still be able to provide for their own and/or family needs on a monthly basis.

 

By using the above act we as registered Debt Counsellors will be able to protect you as the consumer against possible legal action which your creditors are allowed to take by law as set out in Section 129 of the same act. Once we have registered you as having applied for Debt Review, the creditors have to follow the procedures as contemplated in the act. This means all phone calls demanding payments have to stop and no legal action can be instituted.

 

Q2. How Does Debt Counselling Work?

The act now allows the Debt Counsellor to assess your financial situation. This basically means we look at the total income generated by you / the family unit and we compare this to the monthly expenses needed for you / your family to be able to ensure the basic living costs are covered eg housing, water and electricity, food, transport, schooling etc. Luxury items such as DSTV, domestic services, garden services have to be excluded.

 

Once the above calculation has been made we now look at the amount which remains / is available to repay debt with. If a reasonable amount is available, we will use this amount to negotiate new repayment terms with the credit providers. This in effect means that you will be able to pay less to your creditors every month in order to meet your basic needs as mentioned above. It is important to note that the amount being used to negotiate new terms has to be enough to cover the interest sufficiently in order to get rid of the debt within a reasonable period.

 

Q3. Does it mean I will be Blacklisted?

To be placed under Debt Review does not mean you are blacklisted. It is simply a flag with all credit providers to tell them they are no longer allowed to provide you with more credit until such time that the existing loans/credit agreements are paid in full. Once the loans have been paid fully the flag is removed and you will be eligible for credit with immediate effect – there is thus no rehabilitation period at all.

 

However please note it is possible that one or more of your credit providers have already blacklisted you and they will only remove you from the blacklist once the outstanding amount has been paid in full.

 

Q4. How much does it Cost?

Everything we have done for you up to this point including the full consultation mentioned in point 6 above is free of charge. Once you fully understand the process involved and you are certain that this process will be of benefit to you, you will start with payments. Details of the payments will be discussed with you during the consultation meeting but you do not have to concern yourself with payments at this point as all the fees that need to be paid by you will be derived from the first two monthly instalments you make. It will thus not be necessary to save up or “loan” money for the process to get going. These aspects will however be explained to you in detail during the consultation meeting.

 

Q5. Where and how to send my Completed Forms?

All completed forms need to be forwarded to Debt Close via e-mail or fax:

E-mail: info@debtclose.co.za

Fax: 086 524 0411

 

Should you have any questions regarding the process as explained briefly above please do not hesitate to contact us during office hours.

 

Office Hours Monday – Thursday: 07h30 – 13h00

and

14h00 – 16h30

and

Friday: 07h30 – 13h00