Don’t despair if you feel like your debt is getting out of control, we can help you. The debt review process was created to help South Africans get out of debt. This is a rehabilitation process that can get you back on your feet. Debt Review can assist you to have more money for your living expenses at the end of the month.
What is debt review?
Debt review is a process that is regulated by the National Credit Regulator (NCR) and it involves a registered Debt Counselor acting on behalf of you, the client to help reduce your debt into one monthly reduced affordable repayment. The debt counselor has 60 days to complete the process. The debt counselor will negotiate on behalf of the client with all his credit providers. Once a final proposal with all the reduced monthly payments is sent to all credit providers an attorney is appointed to move an application in court and obtain a court order. A credit clearance certificate will then be issued to the client once all of his debt is fully paid up.
The debt review process
- The client applies for debt review and pays an application fee of R50 + vat.
- The debt counselor will do an assessment to determine if the client is over-indebted.
- If the client is over-indebted a form 16 will be signed
- Form 17.1 which is a notification to credit providers and credit bureaus that the client has applied for debt review.
- The NCR will also be notified via the NCR Debt help website.
- The credit providers will then respond with a certificate of balance reflecting the exact amount and interest rates that the client owes.
- The client will have to start paying fees, Month 1 will go towards the debt counseling fees and month 2 will be for legal fees.
- All fees are prescribed by the NCR. DC and Legal fees cannot exceed R6000.00 + Vat
- The debt counselor will then issue a form 17.2 to all credit providers and credit bureaus to notify whether the client’s debt review application is successful or has been rejected.
- The debt counselor will then issue a proposal to all credit providers detailing the repayment plan.
- Credit Providers then have 5 days to respond with consent order or with amendments.
- An attorney will then be appointed to take over the legal process.
- A court date will be set and a magistrate will hear the application.
- A court order will be granted.
- After all the debt is paid the client will be issued with a credit clearance certificate.
Will you qualify for debt review?
Qualifying criteria is as follows:
- You must be working and be able to provide pay slips
- If you are married in community of property, it will have to be a joint application. So you and your spouse will have to go for debt review
- You must be over-indebted, which simply means that your debt and monthly living expenses is more than your monthly income.
Debt Counseling can help you to get your finances back on track. If you are stuck in the debt trap, we can help you out. Let us help you to live your best life.