Frequently Asked Questions
Answers to the questions we are asked most about debt counselling and debt review.
Simply, debt review is a process of handing over your debt negotiations to a debt counsellor – a person who becomes your go-to person, who will compile your debts, look at your income and, with you, work out a payment plan on your instalments and interest options with creditors. Your debt counsellor then negotiates that plan with your credit providers on your behalf.
Consumers who are struggling to meet their monthly debt obligations qualify to apply for debt counselling. These consumers should have a distributable income, which will be used to offer reduced payments to their credit providers. Consumers married in community of property must jointly apply for debt counselling.
Debt management plans typically take three to five years to complete. If your debt counsellor is able to negotiate a lower repayment amount, the account will show up on your credit report as a “settled account”, and you could see a decrease in your score.
Debt review is a very good option for over-indebted consumers. It has changed thousands of lives for the better, rescuing debt-stressed households from the brink of financial ruin.
The mission of the National Credit Regulator (NCR) is to support the social and economic advancement of South Africa by regulating for a fair and non-discriminatory market place for access to consumer credit, and promoting responsible credit granting and credit use, and effective redress.
No. Debt review is a process in which your current debts are structured in a way that you can afford to pay them back within your budget.
Yes. You can be placed under debt review at any time, provided a debt counsellor has declared you over-indebted and legal action has not yet commenced.
Whilst under debt review, it is important to stick to the repayment plan set out by the debt counsellor. If you skip a payment, your creditors have the right to cancel your debt counselling agreement and take legal action against you.
No. You cannot apply for debt counselling if you are unemployed. If, however, you are married in community of property and your partner is permanently employed, you will be able to apply for debt counselling as a joint application.
This is a type of application where both partners apply for debt counselling. If you and your spouse are married in community of property, you are required to apply for debt counselling together.