Debt Counselling in Cape Town
YOU HAVE THE RIGHT TO KNOW WHAT FORMAL DEBT RESTRUCTURING/DEBT REVIEW IS.
We are Debt Counsellors in Cape Town with a proven track record. We help consumers all over South Africa.
What is Debt Counselling/Debt Review?
In South African law, if a consumer is over indebted, a Debt Counsellor can issue a debt restructuring proposal to the Magistrate’s Court that has jurisdiction over that consumer.
The Court can then make either (or both) of the following orders:-
In most cases, consumers are bullied into an unaffordable repayment amount together with a Garnishing order and if granted, the employer has no alternative but to deduct the ordered amount from the consumer’s salary. Other debt commitments and living expenses are not always taken into account. This practise has forced consumers to apply for more debt to try and survive. Garnishing orders and Administration orders can only be cancelled if the consumers make application to court through an attorney. This can become very costly if all costs are taken into account.
The main objective of the Debt Review program was to not only provide Consumers with the required protection but also to assist them in becoming debt free.
There is a vast difference between Debt Review and Administration – one of which is the fact, that unlike administration, under Debt Review all the clients’ obligations will be taken up and restructured. Administration can only cover a maximum amount of R50, 000 hence the reason for some accounts being left out and the client still have to fulfil the total obligation. Under Administration, no negotiations take place to reduce interest rates charged by creditors. Furthermore, the consumer is not blacklisted but flagged by the NCR. This flag can be removed at anytime on a cancellation request by the consumer (subject to the conditions as described in the Fee Guidelines of the National Credit Regulator). The consumer also has the choice of transferring from one Debt Counsellor to another in the event of non service etc. The flag will automatically be removed once the consumer is debt free. With Regulations laid down by the NCR, the consumer’s monthly contribution (rehabilitation) amount is always protected. The NCR has registered and accredited Payment Distribution Agencies who will collect and distribute payment to creditors. No monies are paid the Debt Counsellor. The Payment Distribution Agencies will act on instruction of the Debt Counsellor and distribute funds to the Creditors.
What is Debt Counselling/Debt Review?
In South African law, if a consumer is over indebted, a Debt Counsellor can issue a debt restructuring proposal to the Magistrate’s Court that has jurisdiction over that consumer.
The Court can then make either (or both) of the following orders:-
- That one or more of the consumer’s credit agreements be declared to be reckless credit, if the debt counsellor has concluded that those agreements appear to be reckless;
- That one or more of the consumer’s debt obligations be re-arranged by extending the period of the agreement and reducing the installment amount of each payment due accordingly;
- Postponing during a specified period the dates on which payments are due under the agreement;
- Extending the period of the agreement and postponing during a specified period, the date on which payments are due under the agreement.
THE DEBT COUNSELLING PROCESS
Section 86 of the National Credit Act exists, not only to assist over indebted consumers to restructure their debt, but also to provide consumers with some protection against creditors who in the past acted reckless in granting credit. In the past, Creditors made use of negative marketing tactics to attract consumers. When the consumer start battling to repay his contractual obligations, judgement is obtained and attachment orders issued to attach a portion of the consumer’s salary and/or assets.In most cases, consumers are bullied into an unaffordable repayment amount together with a Garnishing order and if granted, the employer has no alternative but to deduct the ordered amount from the consumer’s salary. Other debt commitments and living expenses are not always taken into account. This practise has forced consumers to apply for more debt to try and survive. Garnishing orders and Administration orders can only be cancelled if the consumers make application to court through an attorney. This can become very costly if all costs are taken into account.
The main objective of the Debt Review program was to not only provide Consumers with the required protection but also to assist them in becoming debt free.
There is a vast difference between Debt Review and Administration – one of which is the fact, that unlike administration, under Debt Review all the clients’ obligations will be taken up and restructured. Administration can only cover a maximum amount of R50, 000 hence the reason for some accounts being left out and the client still have to fulfil the total obligation. Under Administration, no negotiations take place to reduce interest rates charged by creditors. Furthermore, the consumer is not blacklisted but flagged by the NCR. This flag can be removed at anytime on a cancellation request by the consumer (subject to the conditions as described in the Fee Guidelines of the National Credit Regulator). The consumer also has the choice of transferring from one Debt Counsellor to another in the event of non service etc. The flag will automatically be removed once the consumer is debt free. With Regulations laid down by the NCR, the consumer’s monthly contribution (rehabilitation) amount is always protected. The NCR has registered and accredited Payment Distribution Agencies who will collect and distribute payment to creditors. No monies are paid the Debt Counsellor. The Payment Distribution Agencies will act on instruction of the Debt Counsellor and distribute funds to the Creditors.
BENEFITS OF FORMAL DEBT REVIEW
- Eliminate harassment from creditors.
- Have sufficient funds to cover living expenses.
- No additional loans.
- FREE assessment. No upfront fees.
- Reduce monthly debt obligations.
- Repayment periods get extended.
- Successful applications subject to NCR Regulated fees.
- Pay one affordable monthly installment.
- You are protected by the NCA.
- Your creditors are subjected to a formal court order.
Met groot dank wil ek vir Karen en haar span van Debt Resolve dankie sê vir die persoonlike aandag en diens wat hulle aan my gegee het, in my tyd van nood. Karen het baie moeite gedoen om my te help, en geweet wat om te doen om die probleem vinnig op te los. Ek sal hul defnitief verwys aan vriende/familie. Baie dankie...
