What do I look for in a debt counsellor?

There are literally hundreds of Debt Counselling firms advertising their services on the internet. This leaves the Consumer who is already  in dire financial straits more confused. It is our considered view having been in Debt Counselling ever since it started that one should consider a Debt Counselling firm that gives you personal attention and does not consider you a  “number” with your application “lost” amongst the thousands on their data base. It is important that you also look  at the seniority of your Debt Counsellor. In this regard the Debt Counsellor’s registration number will give you an  indication of how long he has been in the business. Consumers should also look for a Debt Counsellor  who  has a legal qualification in addition to his registration as a Debt Counsellor  with  the National Credit Regulator.

I am based in Cape Town. Would your firm still be able to handle my debt counselling application?

Yes certainly. We represent clients throughout the Country and would be able to assist you. Our contact with you would either be by telephone or email.

Why should I consider debt counselling as a solution to my financial problems?

Debt Counselling was specifically designed by  the National Credit Act to protect Consumers from having their assets repossessed. The process is a legal process which every Credit Provider including the banks must participate in. Credit Providers therefore cannot take legal action against you,  if you choose to go for Debt Counselling. Your monthly instalments are reduced on each account by 50 to 60% depending on the Credit Provider in question. Immediately you apply for Debt Counselling,  all  legal proceedings  will stop.Your arrears fall away and in respect of  most of  your Accounts your interest rates can drop to zero per cent!

Is debt counselling only available to individuals?

It is correct that the Debt Counselling process is only available to natural persons and not to Companies or to Close Corporations. Should your Company or Close Corporation,  however, be in financial trouble you can still contact us. We will tailor make a possible solution for you.

My total debts are in excess of R1 000 000.00. Can I still apply for debt counselling?

There is no ceiling or maximum amount which your liabilities must total to enable you to apply for Debt Counselling.

Can I apply for debt counselling if I am unemployed?

To qualify for Debt Review you must  have a disposable income. You will not be able to apply for Debt Review if you do not have an income. You can however still contact us. We will attempt to negotiate with your creditors on your behalf for a moratorium and look at other solutions that may best solve your financial problems.

I have received a summons. Can I still apply for debt counselling?

You would not be able to apply for Debt Counselling in respect of an Account  for which you have already received a Summons. You can apply however for Debt Counselling in respect of your other accounts. Applying for debt counselling will leave you with extra cash which you can utilise to pay towards the arrears in respect of the Summons which you have received.We would  assist you with the Summons that you have received from your Credit Provider and will discuss with you the best possible solution in respect of the Summons received.

I have received a summons for my motor vehicle/ home. What can I do?

You may contact  the  Bank’s Attorneys and make arrangements with them to settle your arrears. Most Banks however  require full payment of the arrears immediately. If you  are unable to pay the amount the Bank’s Attorney demands,  and need time, our Attorneys  would be able to “buy you time”.We suggest however that you immediately contact us  within 10 business days after you have received  the Summons  so that  this option can be discussed with you in detail.

What if the bank has already taken judgement in respect of my motor vehicle/ home?

We would still be able to assist you provided that you contact us as a matter of urgency.

I am married in community of property. Can I still apply for debt counselling?

Yes you certainly can. The application for Debt Counselling however will include your spouse. A joint application will be made to Court on both your behalf.

Do I need to appear in court personally?

In  70% of  Courts , you will not need to appear at the Debt review hearing. Some  Magistrates do however require your personal attendance in court.

I am concerned about the interest on my accounts. Won’t this increase substantially if the terms of my account are extended?

The Debt Counsellor cannot adjust the interest rates in respect of your mortgage bond or your motor vehicle accounts. We however , would be able to reduce  the  interest rates on all other  Accounts , in negotiation with most of your Credit Providers,  to 0% .

Will my employer and work colleagues find out that I have applied for debt review?

Your Debt Counselling application is treated with the utmost confidentiality. We do not contact your employer nor do we advertise your name in the newspapers.

Once I settle my accounts, will I be able to buy on credit again?

Yes certainly. Your Debt Counsellor is duty bound to issue you with a Clearance Certificate once all of your accounts have been settled in full. No Credit Provider thereafter can refuse your application for credit.

Why does my debt review application have to go to court?

The Debt Review process is a legal process governed by the provisions of the National Credit Act 34 of 2005. When your matter goes before a Magistrate you obtain a Court Order. Your Credit Providers including the banks have no option  but to abide by the terms and conditions of the said Court Order. Your Credit Providers are therefore obliged to accept the reduced instalments in terms of the Court Order.

What is the difference between an Administration Order & Debt Counselling?

Administration Orders apply to Consumers whose total debt does not exceed R50 000-00. It would  therefore  not cover for example your motor vehicle and  bond instalment. Payment  is over a much longer extended period. In the long term it is also much more expensive. We are also unable to negotiate interest rates in respect of your accounts under  an Administration Order.

For how long will I be under debt counselling?

On average 5 years ,  if you have no Bond. Each client however , will be treated according to the amount of disposable income he has available to pay off his various accounts. We endeavour to structure a payment proposal plan to enable you to come off Debt Review within the shortest possible time. We will for example attempt to reduce your interest rates to 0% from the date we receive the certificate of balance from your  Credit Providers. Our success rate in this regard is 70%.

I am being harassed by my Credit Providers. Will this stop immediately after I apply for debt counselling?

Immediately you apply for Debt Counselling  with us, we will notify your Credit Providers within 48 hours. The telephone calls and threats of legal action will stop.

Are there any upfront fees payable?

Some Debt Counsellors request from you, your first instalment as an upfront fee when you complete an Application Form for debt counselling. This is unlawful. Your Debt Counsellor is only entitled to charge you an initial application fee of R50-00 and a  rejection fee of R300-00. The rest of the Debt Counsellor’s fees are regulated by the National Credit Regulator.

Does your Firm do insolvencies in respect of individuals and Companies?

Yes we do. We suggest however that you contact us to discuss this option more fully.

Still have queries & need more answers?

You may email your specific query to us and we will get back to you as soon as possible.

Some of the Creditors & Attorneys we deal with

Contact Details

HEAD OFFICE

  • 381 Burger Street, PIETERMARITZBURG, 3201

SATELLITE OFFICE

  • 11 Walnut Rd, DURBAN, 4001

Registered with the NCR - National Credit Regulator
Registration Number: DC425