This is a process where a debt counsellor assess your outstanding debt obligations as well as your living expenses, and then use this information to come up with a restructured debt repayment plan. The debt counsellor then renegotiates with your creditors to come up with reduced instalments and interest rates.
A payment distribution agency is an entity described in the National Credit Act and has a mandate to collect fund from consumers who are under debt counselling, and then distribute those funds to the consumer’s credit providers.
Credit reports display both positive and negative information based on the actions you have taken with regards to your credit. The following information may be present on your credit report: defaults, judgements, administration orders, sequestrations, debt counselling and inquiries.
Unfortunately, consumers who are not gainfully employed cannot apply for debt counselling. However, self – employed consumers can still apply for debt review as they are earning an income. If client is unemployed and is married in community of property to a partner who is gainfully employed, a joint application can be made.
The debt review plan for every consumer is different, and therefore it takes different amount of time for each and every consumer, it depend on various factors such the amount of debt, type of debts, increase or decrease in income, your commitment to become debt free, etc.
Taking out credit while under debt review is against the law and doing so defeats the entire purpose of the debt review process. Once you’re under debt review, major banks and lending institutions will not approve your loan application, as this will be seen as reckless lending. If you are under debt review, the only way to take out an additional loan is to:
This can be very risky, therefore seek advice from your debt counsellor before cancelling the debt review process or before making more debt.
Credit Providers are not allowed by law to change their mind after the debt counselling proposal has been agreed upon. As long as clients maintain their payment to the credit providers each month, they are unable to take further action.
Debt Push will include home loans, vehicle finance, credit cards, overdrafts, store cards, personal loans and micro loans in the debt counselling process. We will analyse the clients’ income and living expenses and work out to see how much they can afford to pay each month.
There is really no need to for us to meet up with the client face to face, all that is required is the client documentation which will be used to liaise with the credit providers.
The nature of the debt counselling process make it possible for us to assist consumers all over South Africa.
No, while you are under Debt Review, your Credit Providers cannot “blacklist” you. However, if the “blacklisting” takes place before you apply for Debt Review, it will reflect on your credit record. This is another reason why you should rather apply earlier than later for Debt Review.