- Why Debt Counselling?
- When can I apply for debt review?
- Can I apply for a debt review if I am unemployed?
- What if I already have judgments against me?
- I’ve been summoned to court, does debt counselling cover this?
- Can I apply for more credit or use my credit cards while I am under debt review?
- Is my money safe?
- Can the credit providers change their mind after the debt plan has been agreed?
- Will my employer and work colleagues find out?
- Once I’ve cleared all my debt will you remove my name from the credit bureau?
The debt counselling process is a powerful process introduced by the National Credit Act to help over–indebted consumers. The main purpose of the act is to help you, the consumer. This process also provides immediate protection against legal action and blacklisting.
DebtSafe’s debt counsellors are fully trained and registered with the NCR ensuring you are protected.
When can I apply for debt review?
Any consumer who is over-indebted can apply for debt review. According to the National Credit Act, a consumer is over-indebted when he/she is unable to satisfy in a timely manner all his obligations under all his/her credit agreements (after paying his basic living costs).
- In short, when you struggle to meet all your debt repayments on time; or
- if you do not have enough money left after paying all your essential living costs to pay your debt, you are over-indebted.
You can apply whether you are:
- blacklisted or not; or
- whether you are in arrears or not.
Typical signs of over-indebtedness include:
- You receive threats because of arrears on installments, for example:
- Letters and notices
- Phone calls from creditors
- When you borrow on a regular basis from micro-lenders/cash-loans
- When you have garnishee orders against your salary
- When you are using a credit card to buy groceries or to pay other basic living costs, debt and installments.
Can I apply for a debt review if I am unemployed?
One of the most important requirements for debt review is being able to prove that you can pay your creditors a reasonable amount. You will unfortunately not be able to go under debt review if you do not have an income. If your partner is employed, you could apply jointly under one application.
What if I already have judgments against me?
You can still contact us. Please however ensure you provide us with all the details of your situation.
If a summons or legal notice in terms of section 12a of the NCA was issued before date of application, it cannot be included except if prior written permission was granted by the credit provider. Negotiations in this regard will be done by DebtSafe on your behalf.
The legal process starts when a notice in terms of section 12a of the NCA has been sent to you via registered mail.
I’ve been summoned to court, does debt counselling cover this?
No, but most attorneys and creditors will respond to the debt review program favourably and agree to have this included in the debt review. You can therefore still contact us. We will negotiate with the creditor on your behalf and find the best possible solution for you.
Home loans and vehicle finance are however a bit trickier. Please contact us if your query is related to this.
Can I apply for more credit or use my credit cards while I am under debt review?
No, unfortunately the act prohibits you from incurring any further credit while under debt review. You will have to destroy all your cards and you will not be allowed to use your credit card.
… Section 88(1): “A consumer who has filed an application in terms of Section 86(1) for debt review must not incur any further charges under a credit facility or enter into any further credit agreement”.
Absolutely. At no stage during this process do we (or anybody else) have access to your money. Your money is paid directly to the NCR accredited Public Distribution Agent (PDA), who in turn distributes the funds to your creditors.
Our fees are only paid out as disclosed in our documentation.
Can the credit providers change their mind after the debt plan has been agreed?
No. As long as you maintain your obligations to the credit providers by making payments according to your new payment plan, they are not able to take further action.
Will my employer and work colleagues find out?
No. All your information is treated with the utmost confidentiality. We will not contact your office unless instructed to do so.
Once I’ve cleared all my debt will you remove my name from the credit bureau?
Yes.