Debt is one of the great plagues of our time, and as South Africans we know it all too well. As many as 10 million South Africans are burdened by over indebtedness, which means the pursuit to clear debt is one of huge importance.
Fortunately, there is hope for you if you’ve been in the grip of debt for a long time now.
The Best Way to Clear Debt is to Go Under Debt Review
That’s right. Debt review is your answer! It’s a formal debt restructuring process for South Africans struggling to make ends meet at the end of each month. The NCA was created by the government to address consumer debt and over-indebtedness in South Africa.
It is also known as the National Credit Act 34 of 2005. The main purpose of the NCA is to regulate the credit industry and protect consumers from unfair lending practices. It aims to promote responsible borrowing and lending practices in the country.
Debt review in South Africa is 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 a debt counsellor to renegotiate and restructure your debt to an amount that you can afford to pay 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.
The Benefits of Debt Review
Here are some of the 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 actually afford, which helps you 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 have to 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, long term. To live debt-free is the goal, and with debt review it becomes possible.
Who is Debt Review for?
Anyone can apply for debt review, but unfortunately, not everyone qualifies for the process. To be accepted to go under debt review, you need to meet the following criteria:
- You must be a South African citizen between the ages of 18 and 65 with a valid South African ID.
- You must be over-indebted. That means you’re not able to cover your essential living expenses and monthly debt repayments from your income. This is determined by your debt counsellor upon review.
- You must be employed and able to make monthly repayments while under debt review. Unfortunately, if you don’t earn a consistent monthly income, you won’t qualify for debt review.
How Long Does the Process Take?
The debt review period varies according to how quickly you can pay off all your debts. The process can last for just a few months, or up to 60 months. If you have reduced your debt and are able to make regular payments, we can assist you in removing your debt review status. This can be done by applying for an order to rescind it.
It’s important to note that debt counselling is not the same as blacklisting. Any record of you being under debt review is removed from your credit record once you’ve completed the process successfully.
What Are the Fees Involved?
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.
How Do Monthly Payments Work?
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 and you will see an upfront breakdown of all the fees charged by us and the PDA in your initial assessment. DebiCheck debit orders allow you to easily control your monthly debit orders.
Your debt counsellor will help you set up your DebiCheck debit order when you first begin.
Working with the National Debt Counsellors
We’re a team of leading debt review consultants 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 good service reputation is improved by our strong relationships with 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.
So, if you’ve been looking for a solution to clear debt, you’ve come to the right place.
