Our goal is to help you manage your debts in order to live a better life. So let us help you become DEBT-FREE. A Debt Review is a procedure that is established by law as a measure to relief the over-indebtedness of consumers. It is also referred to as Debt Counselling. When you’re under Debt Review, your Debt Counsellor will draft a Debt Restructuring Proposal, which contains all of your credit ag
reements, wherein the Debt Counsellor has:
1. Reduced the instalments on every credit agreement;
2. Increased the term of repayment on every credit agreement;
3. Negotiated a reduced interest rate with your credit providers on every credit agreement;
This Debt Restructuring Proposal consolidates your Credit Agreements in a sense. Only one instalment will be deducted from your bank account by the Payment Distribution Agency (PDA). We refer to this one instalment as the “Monthly Affordability Amount” and it will be distributed by the PDA, to your credit providers. The distribution will be done according the Debt Restructuring Proposal that we have negotiated with your credit providers. Debt Reviews are regulated in terms of Section 86 of the National Credit Act 34 of 2005, and was introduced to South Africans in 2007 when several sections of the Act came into force. When the National Credit Act was drafted, the legislature had it in mind to level the playing field in the credit industry. It specifically had in mind to come to the aid of consumers who are trapped in the death-trap of debt. If your application for Debt Review is successful, you will enjoy the protection of the National Credit Act. This means that your creditors will not be able to institute legal action against you. However, this protection does only last for as long as you comply with your obligations under the Debt Review. The moment that you fail to make payments in accordance with your Debt Review, your Credit Providers may terminate your Debt Review and proceed to institute legal action against you. The Debt Review process was introduced to help over-indebted individuals in circumstances where a sequestration in terms of the Insolvency Act, will be too extreme. The legislature realized that not everyone who is over-indebted is necessarily insolvent, and it became necessary that the law with regards to credit agreements had to be reviewed. A more relevant debt-relief program had to be put into place. The latter gave birth to the Debt Review process. The process is ideal for South Africans who are struggling to make ends meet. Particularly for those trapped further into debt and who cannot keep up with their monthly debt repayments. A Debt Review is more effective than any other debt-relief program available. And more than often other programs end up being short-term solutions for long-term problems, getting consumers further into debt. You may be a candidate for Debt Counselling if you experience difficulty to pay your monthly debt instalments on time, or if your are struggling to cover your basic living expenses. If you experience either or both of these, you should contact us and let us help you with a free debt assessment. We are registered Debt Counsellors, and if you experience over-indebtedness, you can approach us to assist you with the application and legal process of a Debt Review. When you enjoy the protection of a Debt Review, you will further enjoy the following benefits:
- An affordable monthly budget that leads to a relief on your strained monthly living expenditures. As a result of your restructured debt repayments, you will automatically also enjoy a new affordable monthly budget;
- We negotiate with your credit providers for a reduced instalment-, reduced interest rate-, and an increased term on all your credit agreements, and will provide you with a Debt Restructured Proposal that is specifically tailored for you. This way, you will be able to afford your monthly debt repayments while still being able to cover all your living expenses;
- One monthly instalment that is collected by the PDA and distributed to your credit providers according to the Debt Restructuring Proposal. This instalment will be reduced in accordance with how we have restructured your debt obligations in terms of your Debt Restructuring Proposal;
- We communicate with your Credit Providers and they must engage with us-, and work through us if they have any queries about you. While you’re under debt review, you are no longer required to communicate with credit providers. We will take over all further communications on your behalf;
- You will be legally protected against any debt collectors-, or legal action that stands to be instituted against you. Before you have applied for debt review, your credit providers may have threatened you with legal action through Debt Collectors. However, while you’re under debt review, you are protected by the National Credit Act. Credit Providers may no longer hassle you – and may not communicate with you at all. We will handle all legal matters from hereon forward. Being or having financial savvy is not a trait many people shares. In other circumstances people may have a lot of financial savvy, but just got caught up in circumstances that financially ruined them. But we still need to live in it. Therefore, we urges every consumer-, everyone-, to take a real good look at your own life. Be honest with yourself and try to point out what you are doing wrong. When you have money, you have to learn to be exceptionally responsible with it. We urge you to save-, spend- and pay your debts wisely. And if you realize that you are past the point of being able to help yourself-, or to come by without any help, it may be time to come into contact with us. You may be needing a Debt Review. You have to power to change your life. So let us help you to become Debt-Free.
