Why Debt Counselling?
Debt Counselling was formally introduced by the National Credit Act to help over-indebted consumers, especially in our current economic crisis. 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. It is there to help you, so why not make use of it?
How long will it take before I actually experience relief?
You will immediately experience the relief that Debt Review offers. Within the first 5 days, we will work out a provisional repayment plan for you which you will be able to afford. In terms of the provisional repayment plan, you will make a single payment to a Payment Distribution Agency, who will distribute the money according to your plan. During the first 60 working days, your Credit Providers will not be allowed to implement action against you. During this time we will prepare your final repayment plan.
How does Debt Rescue manage to lower my payments?
In terms of the National Credit Act we, as Debt Counsellors, are allowed to lower your monthly payments by extending your repayment periods and in some cases by lowering your current interest rate.
If I am placed under debt review will my Credit Providers still contact me?
As soon as you apply for Debt Review at Debt Rescue, we will within 5 days (usually less than 48 hours) notify all your Credit Providers that you are under Debt Review and from that point onward they must, by law, communicate with your Debt Counsellor and not with you directly. It does unfortunately happen from time to time that some Credit Providers take a chance by making contact with our clients directly, but when that happens, you can merely refer them to your Debt Counsellor who will deal with the matter further.
Will I lose my house and my vehicle if I am placed under debt review?
Debt Review cannot make you lose your home or your vehicle. It can however save your home and vehicle, but this will obviously depend on your unique circumstances. Factors that will determine this will include the following:
• Have you received a Section 129 letter from your Credit Provider, and if so, how long ago? If you receive a Section 129 letter from your Credit Provider, you will have 10 working days in which you can obtain the services of a Debt Counsellor, who will endeavour to save the asset.
• Have you been served with a summons in respect of your mortgage bond or vehicle finance?
• How many vehicles do you have and what are they used for? Quad bikes and Jet Ski’s will for example be regarded as luxury vehicles and might have to be returned to the bank.
• Are you giving your full cooperation in the program?
The bottom line remains that you will always be in a better position to keep your home and your vehicle when you are under Debt Review, rather than trying to fight off the banks yourself.
What are the costs involved with being placed under Debt Review?
Our fees are regulated by the National Credit Regulator and are very reasonable, as the idea is to get you out of debt. The fees will be explained to you in detail once you contact us. The important thing to remember here is that our fees and disbursements are included in your affordable debt repayment plan.
Can I apply for Debt Review if I am unemployed?
In order to be placed under Debt Review, you have to have a monthly income that puts you in a position to make a reasonable offer to your Credit Providers. If you are therefore unemployed and you do not receive any other income, like rental income or pension, Debt Review is not the ideal solution for you. There are other solutions available that might be beneficial for you, so you can still contact us.
Will my employer know I am under debt review?
No. We never contact clients at work unless asked to do so.
If I have received a summons can Debt Rescue help me?
You can still contact us. There might be other means of assisting you. The sooner you contact us, the better our chances are for finding a workable solution for you.
If I have a judgement can Debt Rescue help me?
You can still contact us. There might be other means of assisting you. The sooner you contact us, the better our chances are for finding a workable solution for you.
What happens if I get retrenched while under Debt Rescue?
Unfortunately this would be a big problem with regards to your Debt Review, as you must make your monthly payments in respect of your debt repayment plan. Should this happen and you do not immediately get another income to satisfy your monthly installment in terms of your debt repayment plan, you must contact us immediately, so that we can look at an alternative solution or you.
Will my insurance policies be affected by Debt Rescue?
Not at all. Provision is made in your debt repayment plan for all your insurance policies. In fact, if you have vehicle finance, you will be compelled to have insurance on the vehicle.
Does Debt Rescue provide consolidation loans?
Not at all. Our goal is to get our clients debt free. Further loans will definitely not solve your financial problems.
