The Benefits of Debt Review
Debt review was introduced by the National Credit Act (NCA) in 2007. Since then, debt review has saved thousands of South Africans from losing their assets, becoming blacklisted and allowing them to live without the heavy burden of debt taking away money from living expenses.
One fixed monthly payment
When you go under debt review, you no longer have to stress about your monthly debt payments. A debt counsellor will simplify the process for you. You only have one fixed lower repayment per month to pay towards your debt.
Reduced monthly payments towards debt
Your debt counsellor will reduce your monthly repayments towards debt by extending your repayment period. Therefore, by paying a decreased amount every month, you can afford to pay off your debt and cover all of your other living expenses.
Legal protection
Once you’re under debt review you will not have to worry about any legal letters or phone calls from creditors. You and your assets are legally protected from creditors. This means that creditors may not hassle you. Your debt counsellor will take over all communication with creditors on your behalf.
No blacklisting
While under debt review, the credit bureaus cannot blacklist you as you are protected. Once you have completed the debt review process, the credit bureaus have no permanent record that you have ever been under debt review.
Take a break from credit
Once you’re under debt review, your credit profile is flagged at the credit bureaus. This means you cannot take out any debt until the debt review process is complete. This is a great way to stay clear of incurring more debt and start focusing on a debt-free future.
You will become debt-free if you complete the debt review process
When you go under debt review, you no longer have to stress about your monthly debt payments. A debt counsellor will simplify the process for you. You only have one fixed lower repayment per month to pay towards your debt.
About us
Debt Release Consulting (NCRDC3904) is a Debt Counselling service provider accredited with the National Credit Regulator (NCR).
Our services are regulated by the NCR and annual audits are conducted. These audits are to ensure that we adhere to the regulations, as set out by our Code of Conduct, and follow industry procedures.
We understand that dealing with debt can be stressful. Which is why we make sure that every member of our staff team is professionally trained to take the utmost care when dealing with people.
How it works
The process is intended to assist consumers struggling with debt; through budget advice, negotiation with Credit Providers for reduced payments and the restructuring of debts.
Drop us a line (a call back request, or pop us a WhatsApp message) and one of our agents will call you back to complete a free debt assessment.
While on the line we’ll assess your financial situation and determine whether your monthly expenses and debt exceed your monthly income.
Should your financial situation suit the criteria you’ll be placed under Debt Review and protected from your creditors. We’ll inform all your Credit Providers and the Credit Bureaus that you are under Debt Review.
You only pay a single, reduced payment that you can afford. We’ll restructure your payment plan and negotiate with your new repayment terms with your Credit Providers.
Your repayment plan becomes a court order. Our specialist attorneys will apply at the court to make your restructured payment plan a court order.
While undergoing Debt Counselling, you will be protected against legal action taken by your Credit Providers and only have to pay one monthly, affordable reduced payment, leaving you with enough money for your monthly expenses
FAQ’s
If you are over-indebted and falling behind with your debt repayments, debt review can protect your assets by arranging a structured, affordable repayment plan for your outstanding debt. A debt counsellor consolidates all your debt into one monthly payment and reduces your interest rates, based on your circumstances. This debt protection forms part of the National Credit Act. Credit providers cannot take legal action against you if you go under debt review. This means that aside from the protection of your assets, you will also end up paying less for your debt on a monthly basis. All fees will be included in your reduced monthly payment.
You will experience the relief that Debt Review offers immediately. We will work out an affordable provisional repayment plan for you within the first 5 days. In terms of the provisional repayment plan, you will make a single monthly payment to a Payment Distribution Agency (PDA). The PDA will distribute the money according to your plan. Your Credit Providers will not be allowed to take action against you during the first 60 working days. During this time, we will prepare your final repayment plan.
You will experience the relief that Debt Review offers immediately. We will work out an affordable provisional repayment plan for you within the first 5 days. In terms of the provisional repayment plan, you will make a single monthly payment to a Payment Distribution Agency (PDA). The PDA will distribute the money according to your plan. Your Credit Providers will not be allowed to take action against you during the first 60 working days. During this time, we will prepare your final repayment plan.
As everyone’s debt review plan is different, it takes a different amount of time to complete.
Factors that affect how long debt review lasts:
- The amount of debt you have.
- How much you can afford to repay monthly.
Your debt counsellor will negotiate a repayment plan with your creditors that you can afford. The more you pay towards your debt every month, the faster you will become debt-free. If, while you’re under debt review, your financial situation improves, you can speed up the process by paying more towards your debt payments.
The short answer here is that you cannot get a loan while under debt review, for the simple reason that while under debt review your credit profile will be flagged across all credit bureaus, and this will prevent responsible lenders to approve your loan application, once they know that you are currently over-indebted and in debt review because you are struggling to repay your debts already. Whenever one applies for a loan, it’s mandatory for reputable creditors to check your credit history before proceeding with your application. If they work alongside the NCA and NCR, they will reject your application immediately upon seeing your credit status.
After completing the process, ie. your debt is completely paid off, you will be issued a clearance certificate. This certificate is known as Form 19. Thereafter, your debt counsellor will notify the credit bureaus that you are debt free! They are legally required by the National Credit Act to remove the ‘under debt review’ flag from your credit profile within 21 business days of being notified that you are no longer under debt review.
Yes. Once you’ve been unflagged, you can apply for credit once again and make purchases, such as for a house or car, under credit. You will not be denied because you were once under debt review. You will have to, however, build up your credit score, like anyone else who wants to apply for credit.
In terms of the National Credit Act, as Debt Counsellors, we are allowed to lower your monthly payments by extending your repayment periods and, in some cases, lowering your current interest rate.
No, you do not have to appear in Court as your Debt Counsellor will be the applicant and you will be a respondent. As soon as our attorneys notify us of the outcome, we will notify you of the same immediately.In the unlikely event that the magistrate requests your presence, it will most likely be to establish certain facts. You will not be questioned by any attorneys or anything like that as this will be a court application and not an action procedure.
Unfortunately, this would be a big problem with regards to your Debt Review, as you must make your monthly payments in respect of your debt repayment plan. If this happens and you do not get another income to satisfy your monthly instalment in terms of your debt repayment plan immediately, contact us right away, so that we can look at an alternative solution for you.
The simple answer is no. This is because when you enter under debt review, your assets are protected under the NCA (national credit act). By entering under debt review, it allows you to pay off your debt- including your car repayments- until you become debt free.
However, if you have received a section 129 notice or Letter of Demand and do not apply for debt counselling within 10 days of receiving that notice, your car is under risk of being repossessed. Your car is also under risk of repossession if you do not keep up your side of debt review and miss your repayments.
If you’re afraid, start your repayments with a trustworthy debt counselling company, like Debt Release. We will help you to make affordable repayments each month on your way to becoming debt free. After you have joined the process, make sure that you make your repayments on time each month. This way your car will be safe from repossession and you can sleep easier at night.
Debt counsellors’ fees are regulated by the National Credit Regulator (NCR) and form part of your monthly repayment amount so you will not be charged any additional or upfront fees. For example, if your debt instalments total R10 000 per month and we get them reduced to R5 500, our fee will be built into that R5 500. Generally, a portion of the first two monthly payments go to the debt counsellor for administering the debt review and legal process.
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