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Debt Counselling

WHAT IS DEBT REVIEW?

Debt review is a powerful process introduced by the National Credit Act to help over–indebted consumers. The main purpose of the act is to help you, the consumer. This process also provides immediate protection against legal action and blacklisting from your credit provider.

 Debt review, otherwise known as debt counselling, is a debt solution targeted at South African consumers who are over indebted and struggling to manage their finances.

Debt review is the process whereby a debt counsellor assesses a consumer’s outstanding debt and implements a restructured debt repayment plan. This will be done through the process of renegotiating interest rates with credit providers in order to reduce them, as well as by extending the debt repayment terms.

A new affordable monthly budget and payment plan will be drawn up by a debt counsellor and the debt review process entails that the consumer makes only one monthly debt repayment, which will be distributed to all  consumer’s credit providers. This reduces the stress of having to keep up to date and on top of multiple debt repayments.

Most importantly, when under debt review, consumers are legally protected by the National Credit Act (NCA) and creditors are no longer allowed to hassle them.

WHO SHOULD APPLY FOR DEBT REVIEW?

Any person in South Africa that is overly in debt can apply for debt review.  If you are unable to honour monthly debt instalments, if you are in arrears with debt payments and if creditors are contacting you to follow up on payment – then you can apply for debt review immediately.

WHO WILL ASSIST YOU WITH DEBT REVIEW?

Debt counsellors are appointed through the South African National Credit Act and as such endorsed by the National Credit Act.

WHAT DO DEBT COUNSELLORS DO?

A debt counsellor will become the intermediary between you and your creditors.  They will manage the communication process with your creditors and all debt payment negotiations.  Creditors are aware of the National Credit Act and they prefer working directly with debt counsellors as supposed to clients.  Your debt counsellor will take your finances under review and then design a payment plan for you.  They will also communicate with you on a regular basis to provide you with additional financial advice and support.

HOW MUCH WILL MY DEBT REPAYENTS BE REDUCED BY?

Debt repayments are usually reduced by between 30% to 40% – but debt counsellors have been able to negotiate reductions to as much as 60% in the past.  These kinds of reductions are exactly what people need, and also deserve.  The very existence of the National Credit Act was born out of the realisation by The South African Government that consumers were allowed to attain more debt than what they could possibly ever afford by their creditors.  This is why we are able to negotiate debt payment reductions.

WHEN CAN I APPLY FOR DEBT REVIEW?

Any consumer who is over-indebted can apply for debt review. According to the National Credit Act, a consumer is over-indebted when he/she is unable to satisfy in a timely manner all his obligations under all his/her credit agreements (after paying his basic living costs).

  • In short, when you struggle to meet all your debt repayments on time; or
  • if you do not have enough money left after paying all your essential living costs to pay your debt, you are over-indebted.
  • You can apply whether you are:
  • blacklisted or not; or
  • whether you are in arrears or not.

WHAT IS THE PROCESS OF APPLYING FOR DEBT REVIEW?

Step One

Complete the application form and sign it. The application form is called Form. The form 16 must be submitted to us plus supporting document. As soon as we receive your form 16, you are protected from creditors.

Step Two

The debt counsellor will determine what you can afford to pay to your creditors each month and work out a new repayment schedule. This schedule will be presented to creditors

Step Three

When all the creditors have accepted your schedule, we present this document to the magistrate court. This document will then be legally binding by all parties until the last payment on the schedule is made.

WHAT ARE THE BENEFITS OF DEBT COUNSELLING?

The biggest benefit will be an emotional one.  Emotionally you will become relieved from all of the pressure of being overly in debt.  The minute you are taken under debt review you will be in a ‘safer place’ financially.  You will be able to see the future more clearly because your debt counsellor will support you to get back on your feet again.  There are many other benefits to debt review which will allow you to experience a better quality of life for example:

  • You pay one affordable monthly repayment amount towards all your debt
  • Your monthly repayment is calculated after considering your essential living expenses.
  • No more financial stress.
  • You have the opportunity to repair your credit profile.
  • The cost of this process is much less than that of foreclosure, administration, judgment and sequestration.
  • You may at any time withdraw from the process.
  • The National Credit Act protects you.

WHAT ARE THE TYPICAL SIGNS OF OVER-INDEBTEDNESS?

  • You receive threats because of arrears on installments, for example:
  1. Letters and notices
  2. Phone calls from creditors
  3. When you borrow on a regular basis from micro-lenders/cash-loans
  4. When you have garnishee orders against your salary
  5. When you are using a credit card to buy groceries or to pay other basic living costs, debt and installments.

I’VE BEEN SUMMONED TO COURT, DOES DEBT REVIEW COVER THIS?

No, but most attorneys and creditors will respond to the debt review program favourably and might agree to have this included in the debt review. Your debt counsellor however will negotiate with the creditor on your behalf and find the best possible solution for you.

CAN I APPLY FOR MORE CREDIT OR USE MY CREDIT CARDS WHILE UNDER DEBT REVIEW?

No, unfortunately the act prohibits you from incurring any further credit while under debt review.

IS MY MONEY SAFE?

Absolutely. At no stage during this process do we (or anybody else) have access to your money. Your money is paid directly to the NCR accredited Public Distribution Agent (PDA), who in turn distributes the funds to your creditors.

CAN THE CREDIT PROVIDERS CHANGE THEIR MIND AFTER THE DEBT PLAN HAS BEEN AGREED?

No. As long as you maintain your obligations to the credit providers by making payments according to your new payment plan, they are not able to take further action.

WILL MY EMPLOYER AND WORK COLLEAGUES FIND OUT?

No. All your information is treated with the utmost confidentiality.

ONCE I’VE CLEARED ALL MY DEBT WILL MY NAME BE REMOVED FROM THE CREDIT BUREAU?

Yes.

HOW DOES ONE APPLY FOR DEBT REVIEW?

Contact us on 0861 473 328 (0861 GS DEBT), send a please call me to 084 386 6893, or e-mail info@gsdc.co.za to apply

It is such a simple and easy process – and if you are overly in debt, also a very necessary process and step to take.   The application process will be explained to you and we will assist you throughout every step of the application.    Within 5 days no legal action against you from creditors will be possible because being under debt review provides you with immediate protection.  This will give you and our debt counsellors time to review your finances and come up with a payment structure that will work for you.

-We are one email or phone call away- If you start with the application process today, by next week this time you will start experiencing the benefits of being under debt review.  You will finally be able to continue with your life without the pressure of creditors constantly calling you.

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