Frequently asked questions
What happens to my accounts?
Accounts will be frozen by Credit Providers. This includes credit cards, overdraft facilities, revolving credit facilities and store accounts.
What do I tell my Credit Providers?
Try not manage Credit Providers once Debt Review is approved, . The monthly aftercare fee, which is included in your Monthly Debt Review Installment, is utilised by the Debt Counsellor to manage any queries or complications with Credit Providers on your behalf.
Is this the same as being put under administration?
No. Administration only applies to people whose total debt does not exceed R80,000. The repayment term is normally longer and the interest rate of the debt remains the same. It is a costly process in terms of the interest paid and the adverse listing on your credit report can remain there for many years.
Are there any accounts that may not be included?
Only Credit Agreements granted by registered Credit Providers may be included in the Debt Review process. Doctor's bills, School Fees, Sars Penalties and Municipal Debt is excluded from the process. Other excluded accounts include debt where legal action in the form of a summons has been initiated (prior to your application for Debt Review) or where judgment and/or garnishee order(s) have been obtained.
Can I settle debt sooner, if my financial situation changes?
Yes. Once debt is settled, regardless of the timeframe, we can issue a Clearance Certificate. If debt is not yet settled it is not advisible to leave the process.
Will my available monthly income improve?
95% of the time the answer is YES. However, there are guidelines set aside for calculating your new contracts, regardless of your current living expenses. If we are still unable to improve your situation through the process, then we will refer you for Sequestration. This will only be a recommendation. It still remains your decision whether you want to go ahead with the Debt Review or apply for Sequestration instead.
Will Debt Review have a negative effect on my ability to apply for future credit?
No. On completion of the process, we will issue the National Credit Regulator, Credit Providers and Credit Bureaus with a clearance certificate. It takes approximately 60 business days to remove the Debt Review Notice from your credit report. Once removed you will be eligible for credit again.
If I am Married in Community of Property can I exclude my spouse from the Process?
What happens if a Credit Provider declines the new proposal?
The Credit Provider will provide a reason and also a counter offer. The Debt Counsellor will consider the objection lodged as well as the counter offer and may submit a modified proposal for consideration.