Frequently Asked Questions - click on relevant question
1. Is this a loan?
2. What do you mean by a pro rata basis?
3. Can I come on the plan if I already have judgements against me?
4. Does it make a difference if I own my home or not?
5. Will the payment plan cover all my debts?
6. How long does it take for my situation to improve?
7. Will I have to attend an interview?
8. Will my employer and work colleagues find out?
9. Can I still use my credit and store cards?
10. Can creditors refuse to accept lower payments under the debt management plan?
11. Will I receive a default notice?
12. Will creditors continue pursuing me for payments?
13. When can I start on the Debt Management Plan?
14. How long will I have to remain on the Plan?
15. Will I incur any charges if I cancel the Plan?
16. How much does the Plan cost?
17. How are my fees collected?
18. What if my circumstances change?
1. Is this a loan?
No we do not lend you money, you pay us a monthly payment that you can afford which we then distribute to your creditors on a pro rata basis.
2. What do you mean by a pro rata basis?
A pro rata basis means that the creditor that you owe the most money to will receive a larger portion of your monthly payment i.e. payment is distributed according to the amount owed to creditors and is directly proportional to the total outstanding amount. For example, if you owed 5 creditors a total of R20,000.00 of which one of them was owed R10,000.00, they would receive 50% of your monthly payment.
3. Can I come on the plan if I already have judgements against me?
Yes. Just please ensure we know your complete situation when you contact us.
4. Does it make a difference if I own my home or not?
No, it does not make a difference.
5. Will the payment plan cover all my debts?
No, we will deal with all your unsecured loans and non-priority debts. Secured loans such as Bonds and car hire purchase loans must be given priority because of the serious repercussions of not making regular payments. For example, if you fall behind on your bond repayments you could lose your home. When we analyse your finances, we will make appropriate allowances for you to be able to afford your secured loans/priority debt, including your day-to-day expenses before we calculate how much you can afford to pay your creditors.
6. How long does it take for my situation to improve?
Immediately. You will benefit from a realistic budget which will allow your creditors to be paid at a rate which is affordable to you.
7. Will I have to attend an interview?
No. We treat our clients with trust and respect. You will not have to take time off work to visit us and no one will visit you. We will only contact you when it is necessary.
8. Will my employer and work colleagues find out?
No. We never contact clients at work unless asked to do so.
9. Can I still use my credit and store cards? ?
Once we enter into negotiations on your behalf all credit and store cards will have to be destroyed and returned to the companies concerned. This shows a further commitment to us that you are serious about terminating your debt and freeing yourself of this ever increasing social burden.
10. Can creditors refuse to accept lower payments under the debt management plan?
Creditors do not have to accept any offer of repayment below the contracted minimum. However, it is our experience that they are prepared to accept reduced payment offers where we are able to demonstrate that the offer is reasonable and you are committed to repay your debts by use of the debt management plan.
11. Will I receive a default notice?
By lowering your monthly payments to your creditors, you will be in default of your original agreements with your creditors and as a result may be issued a default notice. Creditors send out Default Notices in order to protect their legal position.
12. Will creditors continue pursuing me for payments?
In the short term, your creditors will continue to pursue you for payments. Do not ignore them. Let them know that you have contacted us and that we will be acting on your behalf. You should forward any letters for us to deal with on your behalf.
13. When can I start on the Debt Management Plan?
You may join the plan immediately subject to completing the attached financial statement and speaking to one of our friendly and professional advisors.
14. How long will I have to remain on the Debt Management Plan?
You will not have to sign any lengthy contracts and will be free to leave the plan giving us 2 weeks written notice.
15. Will I incur any charges if I cancel the Debt Management Plan?
No, you may cancel the plan at any time without incurring any further charges.
16. How much does the Debt Management Plan cost?
We will retain your first monthly payment as our initial fee and then a monthly management fee equivalent to 15% of each payment you make to us. Subject to a minimum of R100.00 and a monthly Maximum of R750.00
17. How are my fees collected?
We will retain your first payment as our fee to set you up on the Debt Management Plan. Subsequently every distribution we make to your creditors we will deduct our monthly fee. If we do not make a monthly distribution, we will not take our fee.
18. What if my circumstances change?
As this is an informal arrangement, we will be able to revaluate your personal circumstances and come up with an alternative arrangement.
Act now by submitting your application for an initial review of your situation without any obligations - Click here to submit your details.
Company Registration No.2005/001817/07.
