Why use Debt Counselling?

Debt Counselling was formally introduced by the National Credit Act to help over-indebted consumers, especially in our current economic crisis. The goal of Debt Counselling is to develop a repayment plan which is affordable to you, as well as acceptable to all your credit providers. It is there to help you, so why not make use of it?

How would I know that I need Debt Counselling?

The mere fact that you are reading this, means that you will most probably benefit from Debt Counselling. The golden rule is not to wait too long before you contact us. The earlier you come to us, the easier it would be to find a solution for you. You can only benefit from contacting us.

How long will it take before I actually experience relief?

You will immediately experience the relief that Debt Review offers. Within the first 5 days, we will work out a provisional repayment plan for you which you will be able to afford. In terms of the provisional repayment plan, you will make a single payment to a Payment Distribution Agency, who will distribute the money according to your plan. During the first 60 working days, your Credit Providers will not be allowed to implement action against you. During this time we will prepare your final repayment plan.

Will I lose my house or my vehicle when I am placed under Debt Review?

Debt Review cannot make you lose your home or your vehicle. It can however save your home and vehicle, but this will obviously depend on your unique circumstances. Factors that will determine this will include the following:

Have you received a Section 129 letter from your Credit Provider, and if so, how long ago? If you receive a Section 129 letter from your Credit Provider, you will have 10 working days in which you can obtain the services of a Debt Counsellor, who will endeavour to save the asset.

Have you been served with a summons in respect of your mortgage bond or vehicle finance?

How many vehicles do you have and what are they used for? Quad bikes and Jet ski’s will for example be regarded as luxury vehicles and might have to be returned to the bank.

Are you giving your full cooperation in the program?

The bottomline remains that you will always be in a better position to keep your home and your vehicle when you are under Debt Review, rather than trying to fight off the banks yourself.

How does Debt Rescue manage to lower my payments?

In terms of the National Credit Act we, as Debt Counsellors, are allowed to lower your monthly payments by extending your repayment periods and in some cases by lowering your current interest rate.

What if Debt Counselling is not the ideal situation for my circumstances?

Should we believe that Debt Counselling is not the best option in your particular circumstances, we will refer you to one of our preferred service providers to assist you with the most appropriate process, whether it is sequestration or perhaps selling your property.

I have heard some negative rumours about Debt Counselling. Does Debt Counselling really work?

Debt Counselling evolved a great deal since it was launched in June 2007 by the National Credit Act. As is the case with the implementation of almost all new legislation, all the grey areas in the Act had to be found and tested in court in order to have the Act run smoothly. We are convinced that the industry has already reached the point where Debt Counselling is now running the way it was intended to by the legislator. We have successfully helped thousands of people since the inception of Debt Counselling back in 2007 and we are happy to see that more and more people are realizing that the system is working. So the answer is yes, Debt Counselling does work.

In some isolated cases there were some bad apples in the industry in the form of Debt Counsellors who were in it for a quick buck. Most of these bad apples have since been worked out of the system, ensuring a dependable industry that is helping thousands of South Africans to deal with their financial distress. South Africa has managed to bring Debt Counselling to a point where it is regarded as one of the most successful of its sort in the world.

It is imperative that you choose the correct Debt Counsellor though, as we are of the opinion that there are still certain Debt Counsellors in the industry who do not possess the necessary skills, competence and experience to offer you the full benefits that Debt Counselling can offer.

How long will I remain under Debt Review?

It is different for everybody, as every individual’s situation is unique. In order to lower your monthly instalments, we have to extend your repayment periods. In some cases we manage to convince Credit Providers to also lower their interest rates, which means that your repayment period will not be stretched too much.

Your debt repayment plan will indicate exactly when your last day of payment will be.

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Don't let debt destroy your family! Contact us today for an individual consultation. We work throughout South Africa. We also do business consultations for the well-being of your staff.

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