What is Debt Counselling?
The National Credit Act formally introduced Debt Counsellors to assist over-indebted consumers. The goal of Debt Counselling is to develop a repayment plan, which is affordable to you as well as acceptable to all your Credit Providers.
Why Debt Rescue?
Pay one affordable monthly instalment
Have sufficient funds for living expenses
Instalment amounts are reduced
Repayment periods get extended
The 5 Steps of the Debt Counselling process
You complete an application form and provide us with the details of your Credit Providers.
(consultations are usually done telephonically and by e-mail, but can also be done in person)
We assess whether you are over indebted. This means that your monthly expenses must exceed your monthly income.
(to qualify you have to be over indebted)
Should you be over indebted we will then advise your Credit Providers and the Credit Bureaus that you are now under debt review. Your Credit Providers will be requested to provide us with a Certificate of Balance (COB) in respect of your accounts.
(important to note is that you will immediately start paying a single provisional reduced monthly instalment in respect of your Credit Providers which will be affordable to you. During the first 60 working days, legal action may not be taken against you in respect of the debts that are under review).
After receiving the COB’s, we will restructure your payment plan and negotiate with your Credit Providers where necessary. After negotiations have been completed, your new restructured payment plan will be sent to all your Credit Providers and this payment plan will take effect.
(your restricted payment plan will reduce your monthly debt repayments to an affordable amount leaving you with sufficient money for your living expenses.)
Attorneys will then be instructed to apply to court to make the restructured plan an order of court. You will not have to appear in court yourself, the Debt Counsellor is the applicant in the matter, unless the Magistrate specifically requires your presence.
(the process is now completed and you will be required to ensure your monthly payments are made timeously in order to prevent Credit Providers from taking action against you).