The Debt Review Process
If your monthly repayments on your house, car, credit cards and accounts have risen so high you’re facing blacklisting, one option is to go into debt review.
The debt review process was introduced in 2007 with the National Credit Act (NCA). The benefit is that, while you’re getting debt counselling and in the process of paying off your debts, legal action can’t be taken against you.
To take advantage of the debt counselling process a requirement is that you have a regular income to develop a reasonable repayment plan. To avoid abuse of the debt counselling process a R300,00 plus VAT rejection fee is applicable if the debt counsellor is of the opinion that you currently can manage your debt without intervention.
1
Contact Reliable Debt Counsellors
You can check our credentials on www.ncr.org.za, the website of the National Credit Regulator.
Our NCR number is : NCRDC2985
2
Supply required documentation
3
Initial analyses based on the information supplied
Based on the documentation supplied the debt counsellor will assess if you are eligible for the debt review process
4
The debt counsellor’s proposal
The debt counsellor will propose a payment plan based on your budget and discuss all the applicable fees according to the debt review act
5
Legalize the debt review
We notify your creditors, the NCR and the Credit Bureaus that you have applied for debt review.
We request confirmation of balances from your creditors
We negotiate a reduced and affordable payment plan
Make the renegotiated payment plan an approved court order
6
Final repayment plan
Once agreement has been reached, the debt counsellor will give you your final repayment plan and also submit it to a Payment Distribution Agency.
This agency will take a lump sum from you each month and split it up between the credit providers, according to the repayment plan.
Once all creditors have been paid (Excluding Mortgage & Vehicle Finance) Your creditors, the credit bureaus and the NCR will be notified.
You will be issued with a clearance certificate which allows you to become a responsible credit user