Faq

Types of questioned asked by consumers

 

What is Debt Counselling?

 

I’m listed and I want my name to be cleared

 

I need consolidation loan

 

I’m garnished

 

I’m under administration

 

My property is going on auction

 

My vehicle is being repossessed

 

Q: What is Debt Counselling?

A: Trained individuals (called Debt Counsellors) will help you to deal with your debt. They will deal with your creditors and come to an agreement that allows you to cover your living expenses and apportion the remainder of your available funds to your creditors. Debt cousellors will conduct independent enquiries into your financial circumstances and make recommendations to Credit Providers or even the courts concerning restructuring your debt or even suspending “reckless” credit agreements. You may not actually be “Over-Indebted” and qualify for “Debt Review”, in this case the Debt Counsellor will assist you to work out a budget which will enable you to repay your debts effectively.

 

What are the Pro’s and Con’s of Debt counselling?

Pro’s:

  • Once a consumer has made application for Debt review, Credit Providers can no longer attach any assests or take any further legal action against the consumer pending a determination by a Debt Counsellor as to whether the consumer is actually “Over-Indebted” or not. Should the consumer be “Over-Indebted” the consumer continues under Debt Review until all debt is settled.
  • There is no permanent record of being under Debt Review kept on any Consumer Credit Bureau Data Base, meaning that unlike Administration or other avenues, the process leaves no black mark against your name.
  • Repayment of your debt obligations is done through one payment (to a payment distribution agency).
  • The Debt Counsellor will set aside a certain amount of income for your necessities (food, school fees, transport costs etc) and you then use whatever money you have left over to pay your debts. You will never pay more money than you can reasonably afford.
  • A registered Debt Counsellor is far more likely to get a positive response from your creditors when it comes to negotiating your repayments than you might as a consumer.
  • While under “debt review”, you only make one monthly payment – to a payment distribution agency – who in turn pays all your creditors. This one easy payment will make your finances much easier to manage and reduce your banking fees.
  • A qualified Debt Counsellor will be able to advise you on ways to cut your monthly costs.
  • Relief from all the stress of being in debt. You will get good advice and know that you are doing something about the problem. Knowing that one day the debt will gone, as will any record of it puts your mind at ease. No more letters you are too scared to open. No more phone calls you are to0 nervous to answer. Dealing with the problem rather than ignoring it gives you an instant feeling of relief.

 

Con’s:

  • While under debt review a person can no longer get access to new credit.
  • While this may seem to be a negative thing, it is actually built into the process to protect consumers from becoming further indebted and to protect Credit Providers from being accused of “reckless lending”.

What is Debt Counselling going to cost me?

  • Different Debt Counsellors may charge in slightly different ways. However the legislated industry standard is: R50.00 upfront, a possible R300.00 rejection fee (which should cover creating a new budget for the consumer and advice). Further cost will be absorbed from your first rescheduled repayment, once all your creditors agree, amounting to either up to R6000 of the first repayment or R4000 if it is a “Joint Application”.

 

Q: I’m listed and I want my name to be cleared?

A: These different types of listing forward to the credit bureau by credit providers. In this case you need to contact Transunion on 0861 482 482 to send you your ITC report so you can be aware of which credit providers have listed you and for what reason.

 

 

Q: I need a consolidation loan?

A: Unfortunately we don’t offer loan due to the course that we are a non-profit organization and we assist consumers who are experiencing financial distress. We mediate and negotiate for consumer to pay a reduced instalment on their accounts.

 

 

Q: I need help with a garnishee order?

A: Can you please take me through your garnish order situation

We can assist you with investigating your garnish order, please get a copy of your garnishee order from your HR department and pay slip.

 

        Garnish Order;

  • Latest Salary Advice
  • Breakdown of Monthly Expenses (very brief);
  • Identity document (for Credit Bureau reporting);

 

 

Q: I’m under administration and I want to withdraw from the process?

A: Can you please take me through your situation. You can rescind you administration order by asking your administrator to issue you with Section 74U Certificate for the administration to be rescinded but you need make arrangements with you credit providers to pay your outstanding debts. If you think that your administrator has been overcharging approach the Magistrate’s Court where your court order was granted. Ask them to get the administrator’s accounts taxed.
 

Q: My property is going on auction?

A: The following question get asked

  • I you under debt review?
  • Did you receive summons?
  • How far I you in arrears?
  • What is the reason for non-payment?

After the entire questions have been answered, we can assist you in mediating with your credit provider to pending the legal action based on the merit of the case.
 

Q: My vehicle is being repossessed?

A: The following question get asked

  • I you under debt review?
  • Did you receive summons?
  • How far I you in arrears?
  • What is the reason for non-payment?
  • Did you receive any court order?

 

After the entire questions have been answered, we can assist you in mediating with your credit provider to pending the legal action based on the merit of the case.