skip to Main Content
Tel: 0861 100 999 | Mission Control - Login

No. Debt Collection is when an attorney, a person who is an agent of an attorney or a registered debt collector collects, on behalf of the credit provider, an outstanding amount plus lawful interest, admin costs and collection fees, which by law is capped to certain amounts.

Yes, all debts must be included in the DebtSafe program. The only debt that may be excluded (but what you still must tell your Debt Counsellor about) is if your creditors have sent you a Summons before you applied.

If you received a Summons before entering Debt Review we will not be able to include that account in your Debt Review.

However, we can try to convince that creditor to take part in the Debt Review, but ultimately it will stay the creditor’s decision whether or not they want to participate.

No. With Sequestration your assets are sold to cover your debt and for five years you are not allowed to get credit after being sequestrated.

No. Administration only pays your creditors every third month, the rest of the payments go towards admin fees and commissions. Plus, Administration is only for a debt of R 50 000 or less.

Lastly, Administration exclusively deals with unsecured debt. So, your secured debt, like a home loan or car loan is not included.

You are insolvent when your liabilities are more than your assets. When considering your assets, you include all income, properties, vehicles, cash in the bank, investments etc. Liabilities are all your debt.

If you want to remain solvent, you must be in a position where your assets are more than your liabilities. When you are insolvent, you can apply for sequestration, which is a process where your assets are sold to offset your liabilities.

Usually, your creditors must get a specific percentage of the proceeds of the sale of your assets. After this, you will not be able to apply for credit for five years, after which you can apply for a rehabilitation order. There are alternatives such as Debt Review, which you should consider first before applying for sequestration.

It is the employer’s choice on what the exact requirements are for their employees, so we will not be able to say definitively.

However, historically we have seen that in general being under Debt Review is not an issue when looking for employment. The only industry that might have some question is if you are looking to be employed in the financial sector.

Theoretically, there shouldn’t be discrimination towards someone in Debt Review when it comes to employment opportunities.

Our program is created by South Africa’s National Credit Act. Therefore, the only way we can assist non-citizens with their debt is:

  • if you have a passport number,
  • can prove that you are permanently working in South Africa, and
  • your debt is with South African creditors.

Unfortunately, we do not.

To be able to qualify for Debt Review/Debt Consolidation/Debt Counselling you must be employed or receive regular and consistent income. No creditor will accept a non-payment as a viable option during our negotiations with them.

If you are unemployed you can, however, negotiate with your creditors directly to see if they can offer you some sort of breathing space for a few months. Pay them as far as you can and do not stop looking for employment. If too much time passes and you still do not have employment, they will Summons you. You will then be able to explain to the court that you are unemployed, and you can ask the court to give you 3-6 months to find a job. Do not stay away and ignore the Summons. Show up at the court and state your case.

First, we would recommend that you pull your credit record to see what it looks like and whether it is in good standing or not. It is also a good idea to check your credit record regularly to make sure everything is as it should be.

If you see that there are accounts whose status are in arrears you will have to pay the arrears, and then make sure that you keep up to date with those accounts going forward.

If you have Judgements or Administration Orders on your profile you will need to settle the outstanding debts in order to have that information removed.

Avoid applying at various creditors for credit in a short period of time, this will affect your score negatively. Furthermore, every time you apply for credit and it gets disapproved it also negatively impacts your credit record.

The best way to improve and keep your credit record in good standing is by paying the full instalment that is due on time every month and checking your credit record on a regular basis.

You can check your credit record with any credit bureau. There are mainly four credit bureaus in South Africa. They include; TransUnion, XDS, Experian and Compuscan.

By law, you are entitled to pull your credit record for free annually.

If you are unhappy with the service your Debt Counsellor is providing, or not providing, you have the option to change and transfer to a Debt Counsellor of your choice.

The process of cancelling/withdrawing from Debt Review is a complex one and we will always suggest that you talk to your Debt Counsellor before making the decision. Here is what you need to know about exiting Debt Review before completing the program:

Your Debt Review will stay listed on your credit record until a Clearance Certificate is issued. You can only receive a Clearance Certificate when:

    1. All debts are paid in full, or.
    2. When all short-term credit agreements, including car finance, have been paid up and you are only left with a home loan which is not in arrears in terms of the Debt Counselling Re-Arrangement Order – plus, you must be able to pay your original home loan instalment, or
      You can withdraw from Debt Review prior to a Form 17.2 (prior to being declared over-indebted according to the National Credit Act).

But once the Form 17.2 is issued you will need to approach a Court and get them to rescind your over-indebtedness so that you can be declared as NOT over-indebted. Only when your Debt Counsellor receives this Court Order stating that you are no longer over-indebted will they be allowed to remove the Debt Review listing from your name.

The Debt Review program is structured according to your marriage contract.

Married in community of property (married COP)

The application to the program will be a joint one and all the debt will be thrown into one pool since the law sees you as one estate.

Your income will also be joined in the calculations and the payment of all your debt will be joint into one single instalment. Both will be placed under Debt Review in a joint application.

Married out of community of property (married ANC)

When you are married out of community of property both parties do not have to go under Debt Review.

If, however, there are debts which both signed for and are therefore both responsible for, then both will have to apply for Debt Review. No account may be excluded from the program.

Marrying someone in Debt Review

When marrying someone already in Debt Review it would depend on your marriage contract.

If you are married in community of property (married COP) you will then also need to apply for Debt Review.

If you are married out of community of property (married ANC) then you will not be obligated to apply for Debt Review.

Divorce and Debt Review

If you already have your Debt Review Court Order that Court Order will have to be rescinded if you were married in community of property (COP) or in the case of a joint Debt Review application. Then you will need to re-apply for a new Debt Review program with a new debt profile and repayment plan separate from your ex-spouse or partner.

If your Debt Review Court Order has not been granted yet you will also need to re-apply if you were married in community of property (COP) or in the event of a joint application. Your new application will be separate from your ex-spouse or partner and based on your personal debt profile.

The DebtSafe Head Office is situated at 42 Van Riebeeck Road, Mokopane, Limpopo.

DebtSafe does, however, operate nationally, so we can assist you anywhere in South Africa. With our extensive attorney correspondent network, we are confident we can help wherever you are situated.

The duration of your program with DebtSafe will be subject to;

  • The amount of debt you have.
  • The type of debt you have.
  • Your income.
  • Your essential living expenses.
  • What we can negotiate with your creditors.

How long your program will take is unique to your situation, therefore, we recommend asking for your free, no-obligation debt assessment. This will give you an estimate on the duration of your program.

Important note: Once you are in the Debt Review program and receive extra money you are always welcome to arrange with your Relationship Manager to allocate those funds to a creditor in order to reduce your program’s duration.

Your monthly repayment plan’s instalment will depend on your individual debt profile. What affects your monthly instalment is:

  • The amount of debt you have.
  • The type of debt you have.
  • Your income.
  • Your essential living expenses.
  • What we can negotiate with your creditors.

Your monthly instalment will be unique to your situation; therefore, we recommend asking for your free, no-obligation debt assessment. This will give you an estimate on what your instalments will be when in our program.

Debt Review is a professional service and does require certain fees.

However, there are no up-front fees. All our fees are paid from your instalments and form part of your restructured payment plan.

The fees are regulated by the National Credit Regulator (NCR) and are the same for all Debt Counsellors. There are five types of fees;

  • Once-off Application fee
  • Once-off Debt Counsellors fee
  • Once-off Legal fee
  • Monthly Payment Distribution Agency (PDA) fee
  • Monthly Aftercare fee
  • Once-off Reckless Credit Check fee

Some of the above-mentioned fees will be unique to your debt situation since they are determined by your monthly debt repayment instalment. Our free debt assessment (no obligation required) will provide you with a clearer outline of what your specific fee structure will look like.

To qualify for the DebtSafe program depends on various factors. But, foremost you will have to be seen as over-indebted, as defined by the National Credit Act (NCA). In short, being over-indebted means that you are unable to pay your monthly financial obligations.

Other factors that influence whether you qualify for DebtSafe’s program includes the following:

  • Your income.
  • The type of debt you have (secured/unsecured debt).
  • The amount of debt you have.
  • Your living expenses.
  • Your marital status.

DebtSafe offers a free, no obligation, debt assessment to determine whether you would qualify for our program.

The National Credit Regulator (NCR) is the official governing body that regulates and monitors the Debt Counsellors who are registered with the NCR.

If your Debt Counsellor takes consumer rights and lawful practices seriously they will be registered with the NCR.

The Debt Counsellors of DebtSafe are indeed registered with the NCR. On top of that, DebtSafe has been helping South Africans with their debt from 2009 which makes DebtSafe a well-established company with many years of experience to offer.

Here is DebtSafe’s managing director’s NCR registration number:
NCRDC1078. You are welcome to visit the NCR website to check the registration.

DebtSafe helps South Africans struggling with their debt through a program called Debt Review (also referred to as Debt Consolidation or Debt Counselling).

In short, our program reworks your debt repayments into an affordable, consolidated repayment plan – meaning your debt repayments are made into one single, reduced repayment.

Your repayment plan is formulated in such a way that it enables you to pay your debt as well as pay for essential living costs (school fees, food, rent, commute etc.), giving you immediate financial breathing space.

Your repayment plan is agreed upon by your creditors (we negotiate with them on your behalf), is regulated by the National Credit Act (NCA) and authorised through a Court Order. This means that our program legally protects you, and your assets (car and home), against creditors who want to take legal action against you.

Once you have successfully completed your DebtSafe program you will receive a Clearance Certificate. This is sent to you and the credit bureaus. The credit bureaus will then remove the Debt Review flag from your profile as well as all your default listings. Your payment history will however still reflect on your credit profile for the period of two years as per the conditions of the National Credit Act (NCA).

Load More