Frequently Asked Questions
How do I apply for debt review?
You need to seek out a Debt Counsellor to assist and inform you of the process, its advantages and disadvantages of the debt review process and all costs involved.
Do I pay any upfront fees?
No upfront fees are payable by you as the Debt Counsellor fees are calculated into your instalment. However the Debt Counsellor may request that you pay legal fees should the need arise, which can also be calculated in you monthly instalment
If I am found to be over indebted, how do I inform my creditors?
The Debt Counsellor will automatically send confirmation to all your creditors informing them that you are under the debt review programme, provided you have informed your Debt Counsellor of all your financial obligations and current creditors.
Can I join the plan if I already have judgements against me or already blacklisted?
This programme is specifically designed to assist clients who are in financial dire straits, so even if you are blacklisted you may join the programme.
How does the debt review process work?
Once you have seeked out a Debt Counsellor who has explained the process, he/she will ask you for certain documentation in order to assess whether you are over indebted. If it is found that you are over indebted you will be asked to complete an application form and all fee structures will be explained to you and what the costs involved would be.
Will my assets be safe from my creditors?
Yes your assets will be safe as the aim of the debt review process is to protect the consumer from harassing creditors.
How long does it take for my situation to improve?
Your financial situation will immediately improve. You will benefit from a realistic budget which will allow your creditors to be paid at a rate which is affordable to you.
Will the payment plan cover all my debts?
Yes, it will depending on the accounts which you choose to include in the programme as the debt counsellor negotiate a reduced instalment on your behalf which is affordable to you and effectively allow you to be able to afford your day-to-day expenses and leave you with more cash to comfortably sustain yourself whilst all your creditors are financially satisfied.
How do I keep track of my financial situation?
The Debt Counsellor will send you monthly financial statements in order for you to keep track as to how your creditors are satisfied.
What if my financial circumstances change?
You have to immediately inform your Debt Counsellor should such an situation arise. If it is that you cannot make full payment, the Debt Counsellor will inform your creditors of your change of circumstances. However you need to remedy the situation as soon as you are able to so, meaning you should make payment to settle such arrear instalment.
Will my employer and work colleagues find out?
No, we never contact clients at work unless asked to do so. Your affairs will be dealt with in the strictest confidence.
Can I still use my credit and store cards?
Once we enter into negotiations on your behalf all credit and store cards will have to be destroyed and returned to the companies concerned. This shows a further commitment to us that you are serious about terminating your debt and freeing yourself of this ever increasing social burden.
Can creditors refuse to accept lower payments under the debt counselling plan?
Creditors do not have to accept any offer of repayment below the contracted minimum. However, it is our experience that they are prepared to accept reduced payment offer where we are able to demonstrate that the offer is reasonable and you are committed to repay your debt by use of the debt counselling plan.
Will I receive a default notice?
By lowering your monthly payments to your creditors, you will be in default of your original agreements with your creditors and as a result may be issued a default notice. Creditors send out Default Notices in order to protect their legal position.
When can I start on the Debt Counselling Plan?
You may join the plan immediately subject to your assessment of over indebtedness and on completion of our forms, the process starts immediately.
How long will I have to remain on the Debt Counselling Plan?
You will not have to sign any lengthy contracts and will be free to terminate our services at any point. However your status with the credit bureaus will state that you are still under debt review until all your debt has been cleared.
Will creditors continue pursuing me for payments?
Your creditors shall according to National Credit Act stop pursuing you when you have been placed under debt review. Let them know that we are your debt counsellors and that we will be acting on your behalf. Should you receive any kind of letters from any of your creditors, you should immediately inform us and we will deal with the matter.
I've been summoned to court, does debt counselling cover this?
No, however it is our experience that most attorneys and creditors will respond to the debt review programme favourably and agree to have this included in the debt review.
Can a debt counsellor help me if I had loans or credit agreements prior to 1 June 2007?
YES! It is your financial situation TODAY that is taken into account.
Once I've cleared all my debt will you remove my name from the credit bureau?
YES we will.
Will I be able to access credit while I’m under debt counselling?
No you will not be able to access credit as you will be listed with the credit bureau and one of the requirements to qualify for the programme should be that the consumer should not enter into any kind of credit agreement.
Am I able to withdraw from this programme at any time?
Yes you may withdraw at any time. However there will be a cancellation fee involved and should you do so, you are exposing yourself to legal action against you by your creditors as you no longer are protected as you were whilst under the programme.
Who can apply for Voluntary Redistribution?
- Everybody qualifies for Voluntary Redistribution;
- Anyone who has a cash flow problems and /or who cannot afford the required full installments from their creditors;
- Blacklisted clients are welcome to join the programme.
How does Debt Mediation work?
- It operate as an alternative arrangement affordable to the consumer and acceptable to the creditor;
- The agent negotiate on behalf of the consumer with the designated creditors to lower the initial installment due by such consumer which would be affordable to the client;
- You as the consumer have the choice of which accounts the agent should handle;
- It is not Debt Review or Administration and no court applications or court appearances.
How will this programme benefit me as a consumer?
- You have more cash in your pocket;
- You have one reduced installment/repayment for all your accounts;
- You may save up to between 40% and 60% on your monthly repayments;
- You will no longer receive harassing phone calls;
- No legal action – no repossessions of your assets;
- You have an option to opt out any time.
Will my credit worthiness be affected should I join this programme?
- If you are not blacklisted with the Credit Bureau, you will be protected from being blacklisted;
- You stay creditworthy, depending on your overall credit record, you might be able to access more credit
What if I do default on my payments?
- If the consumer default on his/her payment, it is not necessarily bad for the consumer as long as the consumer inform the agent of his/her position and make alternative arrangements in order for the agent to correct such default;
- The consumer should be prepared to pay in arrear payment in order to remedy such default as soon as possible before the creditor(s) take legal steps especially if it is an overdue account which has already been handed over;
- Should the consumer not inform his/her agent, the agent may cancel the client’s application after the agent has made numerous attempts to make contact with such consumer which will leave the consumer vulnerable to the creditors who may take legal steps against such consumer at any time after such default.
Will my assets be safe?
- The client’s assets will be safe if the consumer do not default on his/her new adjusted reduced installment;
- It depends thus on the consumer to protect his/her own interest in order for them to secure their assets by NOT DEFAULTING on payments.
Is there any upfront fees payable?
- There is no upfront fees payable by the consumer;
- Fees payable is calculated into the consumers new reduced installment, which will be payable in installments
Why do I need to pay an aftercare fee to the agent?
An aftercare fee is necessary in order for the agent to maintain the consumers account and to oversee that all creditors are satisfied monthly and to handle all related queries specific to that consumer.
Do I deal directly with my creditors?
No, the agent will act on your behalf and negotiate a reduced installment on all the consumers’ account of his/her choice.
Is there any court cases and/or court appearances involved?
No, all the consumer has to do is to honor his/her payments to all creditors until the account has been settled.
Will I be able to access credit whilst on the programme??
The consumer is not listed on the Credit Bureau whilst under this specific programme, thus depending on your credit status at the time the consumer has joined the programme, he/she will still be able to access credit (that is if the consumer is not already listed on the Credit Bureau).
What happens to my accounts that are paid up during such programme?
- Once a consumers’ account or one specific account is paid up, it is automatically removed from the programme;
- The client then have the option of applying for a Rescission of Judgment if it was an account that was listed on the Credit Bureau and have his/her name removed.
For your ease of reference DEBT EEZY compiled a Q & A so that the ordinary person can understand the Basics of Debt Counselling and also to ensure Financial Freedom to over-indebted people.