Frequently Asked Questions - click on relevant question
1. Is this a loan?
2. Will I be listed on the Credit Bureau?
3. What do you mean by a pro rata basis?
4. Can I come on the plan if I already have judgements against me?
5. Does it make a difference if I own my home or not?
6. Will the payment plan cover all my debts?
7. How long does it take for my situation to improve?
8. Will I have to attend an interview?
9. Will my employer and work colleagues find out?
10. Can I still use my credit and store cards?
11. Can creditors refuse to accept lower payments under the debt counselling plan?
12. Will I receive a default notice?
13. Will creditors continue pursuing me for payments?
14. When can I start on the Debt Counselling Plan?
15. How long will I have to remain on the Plan?
16. I've been summoned to court, does debt counselling cover this?
17. Once I've cleared all my debt will you remove my name from the credit bureau?
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. Will I be listed on the Credit Bureau?
Yes, once you have decided to complete the application and paid the initial fee of R50, all credit bureaus will be notified that you are currently undergoing a debt review. This is then updated according to how we progress with your review.
3. What do you mean by a pro rata basis?
The pro rata calculation we use in Accordance with the National Credit Regulator means that the creditor that you make the largest monthly installment to receives a larger portion of your monthly payment - no distinction is made between priority and non priority debts. This means your bond and car loan for example will be treated like all your other creditor debts.
4. 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.
5. Does it make a difference if I own my home or not?
No, it does not make a difference.
6. Will the payment plan cover all my debts?
Yes, we will deal with all your unsecured and secured loans. When we analyse your finances, we will make appropriate allowances for you to be able to afford your day-to-day expenses before we calculate how much you can afford to pay your creditors.
7. 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.
8. 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.
9. Will my employer and work colleagues find out?
No. We never contact clients at work unless asked to do so.
10. 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.
You will not be able to apply for further credit until your debt has been repaid.
11. Can creditors refuse to accept lower payments under the debt counselling 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 counselling plan.
12. 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.
13. Will creditors continue pursuing me for payments?
Your creditors shall according to national Credit Act stop pursuing you when you have been placed under debt review. Let them know that we are your debt counsellors us and that we will be acting on your behalf. You should forward any letters for us to deal with on your behalf.
14. When can I start on the Debt Counselling Plan?
You may join the plan immediately subject to completing the attached financial statement and speaking to one of our friendly and professional advisors.
15. How long will I have to remain on the Debt Counselling Plan?
You will not have to sign any lengthy contracts and will be free to terminate our services at any point. However your status with the credit bureaus will state that you are still under debt review until all your debt has been cleared.
16. I've been summoned to court, does debt counselling cover this?
No, however it is our experience that most attorneys and creditors will respond to the debt review programme favourably and agree to have this included in the debt review
17. Once I've cleared all my debt will you remove my name from the credit bureau?
Yes we will.
Act now by submitting your application for an initial review of your situation - Click here to submit your details.
Company Registration No.2005/001817/07.
