Services

What is debt review?

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.

The National Credit Act (NCA) introduced the formal debt rehabilitation program, debt review, in order to prevent consumers from being placed into personal administration and having to deal with the long term effects.

The process was also implemented in order to make sure that debt counsellors follow strict and ethical guidelines when assisting clients with gaining their financial well-being.

Debt review is the process whereby a debt counsellor assesses a client’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, which will provide the client with the correct guidelines and means to live off.

In addition to this, the debt review process entails that the client makes only one monthly debt repayment to a payment distribution agency, which will then pay all the clients 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, clients are legally protected by the National Credit Act (NCA) and creditors are no longer allowed to hassle them.

At National Debt Consultants, the debt review process is administered by a professional and efficient debt counsellor registered by the National Credit Regulator (NCR). Our debt counsellors are accountable for guiding our clients step by step through the entire process and ensure that they are provided with the best financial advice and means to solve their debt problem.

Our debt counsellors go the extra mile by not only assessing the clients situation, but by also ensuring that they are taught how to budget and manage their finances in order to spend accordingly and keep up to date with their debt review payments.

South African consumers who are classified as over-indebted will qualify for the viable debt solution, debt review. However, it is also required that consumers are employed and earning an income.

What are the benefits of Debt Review:

• Legally protected

• No harassing calls

• No harassing emails and sms from creditors

• Assets are protected from repossession

• Reduced interest rates

• Reduced instalments

• Improved credit score

What is debt review removal?

Before you approach anyone for debt review removal, there are really important things you need to know, what is possible or not. In terms of debt review guidelines, debt review removal or clearing your name from debt review can only be done on the basis of the following instances:

If a consumer has withdrawn from debt review prior to the issuance of Form 17.2 (before being declared over-indebted).

When the consumer has settled all debt obligations and a clearance certificate has been issued (Section 71 (2) (b) (i) of the National Credit Act, 2005) (Note that this should not be costly or expensive as it is a very easy process and an attorney is not involved as there is no court process involved.

If one has been under debt review and their circumstances have changed i.e when their income has increased considerably and they are no longer over-indebted. The consumer through the debt counsellor has to prove through an income and expenditure i.e. household budget. Note that this is only possible if the consumer does not have a court order in place.

It is important to note that if there is a court order under debt review in place, it is no longer possible to approach the courts to rescind the order because the law has changed this. On 03 September 2019, the Johannesburg High Court delivered a judgment that changes the law and in this instance, it is no longer possible for one to exit debt review.

At National Debt Consultants we are assisting consumers with debt review removal or to clear your name from debt review . You can approach Debt Sage to get help for debt review removal and you are issued with a clearance certificate and the debt review flag is removed/ lifted from the credit bureaus in a period of 21 days maximum. Yes that is how long it takes for one's name to be cleared from debt review after they have paid off their accounts and we have issued a clearance certificate. This obviously depends on how credit bureaus are quick to remove the flag after we send certified Form 19 which is the clerance certificate to all credit bureaus with paid up letters attached.

The debt review removal process, we do the the following :

• Pull up your credit report.

• Obtain confirmation from credit providers in the form of paid-up/ prescribed letters. (If you have paid-up/ prescribed letter please forward them to us)

• Update your status on NCR DHS to F2 status.

• Generate Form 19.

• Send Form 19 to all the credit providers.

• Certify Form 19

• Send certified Form 19 to all credit bureaus with paid up letters attached.

We would need paid-up letters for all the accounts that were under debt review. Please note that if we do not send paid up letters to credit bureaus together with the clearance certificate, they will not remove your debt review status on their records.

Who do we assist with Debt Removal:

We assist consumers that were wrongly placed under Debt Review:

• If one has been under Debt Review and their circumstances have changed

• Consumers that were misled

• Consumers that are not happy with their current debt counsellors/ Debt review process

• Consumers that have paid up letters

What is debt mediation?

When faced with rising debts, it can feel overwhelming to decide on a debt management solution that is best suited to your specific requirements. Debt Mediation is similar to Debt Review in a few ways and has proven to provide relief to over indebted South African consumers who are only slightly indebted, effectively gaining financial control before the situation calls for the more formal process of Debt Review.

One of the standout factors of Debt Mediation is that you as the consumer do not have to be declared officially over indebted to benefit from this financial solution, which is a prerequisite for undergoing Debt Review. Debt Mediation gives you the opportunity to gain control of your debt repayments as soon as you realize that these monthly financial obligations are out of your budget and can no longer be sustained. Our knowledgeable team will take the time to assess your various financial commitments, before working towards a new repayment plan that can make a bid difference in your quality of life.

It is important to note that when undergoing Debt Mediation, there is no binding legal contract in place, which comes with its own set of benefits and downfalls. Without the protection provided in a formal legal contract, consumers will not be able to avoid potential asset repossession, which is a possibility that faces those who have continually missed or skipped monthly repayments to one or more of their existing creditors. For some, the less formal proceedings of Debt Mediation can prove beneficial, as it is easy to cancel the process if your current finances take a turn for the better. Fortunately, the Debt Mediation exercise is able to protect consumers from becoming blacklisted, as they turn their focus towards resolving their financial issues.

At National Debt Consultants, our main objective is first and foremost to provide each client with the debt repayment solution that is best suited to their current financial and life circumstances. When we move ahead with Debt Mediation, it is because this process is best aligned with the ultimate goal of obtaining the status of being completely debt free. In many cases, Debt Mediation is considered the ideal solution available to consumers facing short-term or temporary financial setbacks, which can be turned around with the assistance of reliable financial professionals.

Once it has been determined as the best approach, our National Debt Consultants team can assist South African consumers with a Debt Mediation service that is result-driven and effective. The first step involves renegotiating your monthly instalments with your various creditors on your behalf, leaving you with more room in your budget to cover you and your family’s basic living expenses without relying on loans or credit cards.

By assessing and restructuring your various monthly payments and staying on top of problems that arise before they become real issues, you are able to maintain a healthier relationship with money that is free of debt. Check in with our professional team today for sound financial advice and assistance.

What are the benefits of Mediation:

• No red flag

• Reduced interest rates

• Reduced payments

• Can still open accounts

• Can utilize current accounts

• Informal agreement

• No court order / judgement