As with anything in life, we often need help from others. It’s the same with debt. National debt advisors like the National Debt Counsellors are the ones who step in to help you navigate your journey out of debt. Let’s look at them in a bit more detail.
What is Debt Review?
Debt review is a formal debt restructuring process for South Africans struggling to make ends meet at the end of each month. It was created under the National Credit Act 34 of 2005 (‘NCA’) and was the government’s answer to the rising problem of consumer debt and the chronic over-indebtedness that plagues many South Africans.
Debt review was built with you, the consumer, in mind, and is highly regulated and can only be conducted by an NCR qualified Debt Counsellor. The process allows national debt advisors to renegotiate and restructure your debt to an amount that you can afford each month.
Your only requirement during the debt review process is to continue to pay your reduced monthly instalments, and once your plan is complete and your debt is paid off, your credit record is cleared, and you can start living debt-free.
How to Find Trustworthy National Debt Advisors
When you’re considering going under debt review with a company in South Africa, there are quite a few key elements to keep in mind when deciding which company to work with. Some helpful initial questions to ask can include:
- Are they a reputable company?
- Have they successfully helped previous clients undergoing debt review?
- Are their Debt Counsellors registered with The National Credit Regulator (NCR)?
- Have they partnered with a good payment distribution agency?
These questions are a good starting point, but let’s look a bit deeper at a few critical things to keep in mind when you’re on the hunt for a trustworthy debt review company.
Look for National Debt Advisors Who Are Registered with the NCR
The National Credit Regulator is responsible for registering and regulating any and every debt counsellor in South Africa. If your debt counsellor is registered with the NCR, you know you’re working with a professional who’s under the rule of the National Credit Act, and meeting the standards set by the NCR.
Do Your Research
Going under debt review is an important process that requires a lot of trust, both from you and from the company you work with. That means it’s crucial to do your homework on the company you’re looking at. Read reviews that people have given, ask your friends for recommendations, and check the company’s credentials.
You’ll be grateful that you did. After all, you’re giving all your financial affairs to this company. So you want to be 100% sure that you’re in good hands!
Make an Informed Decision
When all is said and done, the right debt review company is the one that aligns with your needs, communicates well, and has a good reputation.
No tricks, no false assurances—only reliable, sound, and professional guidance. You deserve a debt review company that supports you, working alongside you to attain financial stability and a future free of debt.
Keep in mind that this is your opportunity to manage your finances well, and the appropriate debt review company is your partner throughout this journey.
Why Debt Review with National Debt Counsellors is a Good Idea
The debt review process has a lot of benefits, the most significant is that it allows you to repay your debt in a structured and sustainable way. Your debt counsellor assesses your budget, considers essential expenditures such as groceries, housing, education, and transport, and then works out how much you can afford to pay going forward.
Here are some of the other main reasons you should consider working with us to help clear your debt through this process:
No More High Amounts
Your monthly repayments are reduced to an amount you can afford. This helps you slowly but surely step out of debt and into financial freedom.
We Cover You (and your goods)
We provide immediate protection to you and your assets (including your house and car), so there’s no need to worry when you’re under the debt review process.
We’re the Ultimate Middleman
We negotiate with your credit providers directly, so you don’t receive any more harassing phone calls.
More Peace, Less Stress
We negotiate lower interest rates on your behalf, and we extend your repayment terms. This means you get a bit more breathing room as you begin moving towards more financial stability.
We’re Comprehensive from Start to Finish
Once you’ve cleared your debt, we apply to clear your credit report. So, all you must do throughout the process is make your payments. We do everything else on your behalf!
The ultimate reason to apply for debt review is simply to get on a better financial wicket overall. To live debt-free is the goal, and with debt review it becomes possible.
How the Process Works
The process is much simpler than you might expect. It is summarised in a few easy steps:
Step 1: Request a Free Consultation from National Debt Counsellors
One of our professional consultants at National Debt Counsellors contacts you and takes you through a free, no-obligation financial assessment to determine whether you qualify to go under debt review. Don’t worry, this process is completely confidential!
Step 2: Complete Your Application Form
If you qualify for the debt review process, we send you an application form (Form 16) to complete and sign.
Step 3: We Notify Your Creditors
We then notify your creditors that you’ve applied to go under debt review. From here, you and your assets are immediately protected under the National Credit Act.
Step 4: We Negotiate a New Payment Plan for You
This is where the magic happens! We negotiate your loan agreements with your credit providers and restructure your repayments to an affordable amount. This means you’ll no longer struggle to make payments each month!
Step 5: Pay a Single, Affordable Monthly Instalment
Once we’ve handled the above steps for you, you begin paying one easy monthly instalment via an accredited PDA (Payment Distribution Authority). This will distribute the funds to your credit providers.
Step 6: We Make the Approved Plan an Order of the Court
Our panel of Attorneys apply to the Magistrates Court on your behalf to make your restructured repayment plan an official order of the court and ensure you remain protected during the process.
Step 7: Your Debt is Paid Off and Your Credit Record is Clear!
Slowly but surely, you’ll pay off your debt. Hooray! Once it’s repaid, we issue you a clearance certificate and notify the credit bureaus to clear your credit record. You are now able to live in financial freedom! Cue the budget-friendly celebration.
What Are the Fees Involved?
With a general understanding of debt counselling, let’s look at the fees you can expect to pay. The National Credit Regulator issues fee guidelines for debt counsellors that include an application and administration fee of R350 plus VAT, a restructuring fee equal to the first month’s instalment up to a maximum of R8,000 plus VAT (maximum of R9,000 for joint applications married in community of property), and a reckless lending fee of R1,500 plus VAT.
There is a monthly maintenance fee of 5% of the instalment up to a maximum of R450 plus VAT. These fees ensure you always receive professional service from your debt counsellor and are included in your monthly instalments.
There is also a legal fee payable to the attorneys for obtaining a court order to ensure you are protected from your credit providers for the duration of your debt review. Your debt counsellor provides details of this in your application.
This can sound quite overwhelming, we know. Keep reading, though. We’ve made it a little less complicated below.
How Do Payments Work with the National Debt Counsellors?
The debt counselling process is highly regulated by the National Credit Regulator. This means the fees that debt counsellors are allowed to charge, how monthly payments are collected and distributed, and the time frames for the processes are all contained in the National Credit Act or supporting guidelines from the NCR.
As National Debt Counsellors, we don’t collect any money from your bank account directly. We only work through a licensed and accredited Payment Distribution Agency (PDA) as per the terms of the NCA.
We’ve chosen to partner with the biggest and most reputable PDA in the industry, Hyphen PDA. Every month, Hyphen deducts only the agreed instalment from your account via a DebiCheck-authenticated debit order. They distribute the funds directly to your creditors according to the agreed plan that has gone through court.
We only charge the fees allowed under the NCA. You’ll see an upfront breakdown of all the fees charged by us and the PDA in your initial assessment. DebiCheck debit orders allow you to control your monthly debit orders easily.
Your debt counsellor will help you set up your DebiCheck debit order when you first begin.
Now that you’re aware of the debt counselling fees, it’s helpful to know how the process of debt counselling works so you can know what to expect and what you’re paying for.
Why You Should Choose National Debt Counsellors
We’re a team of leading national debt advisors who believe that debt doesn’t mean disaster. We assist everyday South Africans who find themselves struggling to meet their monthly financial obligations. Our team of Debt Counsellors are registered with the National Credit Regulator and offers you a free, no-obligation assessment of your financial situation.
Our reputation for providing exceptional service is only enhanced by the great relationships we’ve cultivated with all the major credit providers in South Africa. This gives us confidence to negotiate the best payment plan to suit your financial needs and ensures that we protect you and your assets.
We’re available from Monday to Saturday to assist you with any queries or questions you may have.
