Debt management and debt administration - differences
1. Debt Management or distribution of debt allows us to negotiate a lower payment to your creditors on your behalf.
An Administration order is run through the courts and can be very costly
2. The term that you choose with debt distribution is entirely up to you, it could vary from short to long term depending on your needs.
An administration order commits you to five (5) years. During this period you may not take out any further debt or loans over twenty Rand (R20.00). It would be a criminal offence to do so.
3. Creditors will generally prefer dealing with a debt management company as they will receive a greater proportion of the money you pay as it will not be taken up by COSTLY court and lawyer’s fees.
4. We will manage all your payments to creditors on a monthly basis on your behalf.
Under administration, distribution by Lawyers is only done once every three months after all their costs have been deducted (In some cases it can take longer than a year before your creditors' receive any form of payment).
5. Any amount of debt can be consolidated through a voluntary distribution of debt.
Your debt can not exceed R 50,000.00 in order to be placed under administration.
6 Should your circumstances change you will always be able to amend your agreement with us at no additional charge.
It is very difficult to change an administration order once it has been put in place due to the complex nature of administration orders.
Company Registration No.2005/001817/07.
