FAQS
What is debt review?
Debt review is a formal legal process that helps over-indebted consumers who are struggling to meet their monthly debt obligations. A new affordable monthly budget and the payment plan will be drawn up by the debt counsellor, showing a clear picture of your household spending vs. your income and a detailed plan on how you will pay up your debt commitments. A debt counsellor then approaches your...
WHAT IS A DEBT REVIEW CLEARANCE CERTIFICATE?
A debt review clearance certificate is a certificate that verifies that a consumer has satisfied all obligations under every credit agreement that was subject to a debt review court order or debt review repayment agreement. The issuing of a clearance certificate signals the end of a successful debt review process. The effect is that even if the consumer has a long-term agreement that was subject...
What are the advantages and disadvantages of debt counselling?
The National Credit Act (NCA) of 2005 introduced debt counselling as a measure to assist consumers struggling to service their debt. Simunye Debt Advisory has been helping many consumers become debt-free by taking advantage of debt counselling. When one is deep in debt, the advantages of debt review outweigh the disadvantages. There are numerous advantages for debt counselling and we discuss the...
WHY DO OUTSTANDING BALANCES ON THE STATEMENT FROM MY PDA AND CREDITORS DIFFER?
I have received a lot of enquiries from our existing clients under debt review asking this question. Maybe you have also come across this as well and need some answers. Balances on statements that the debt counsellor issues which he/ she gets from the Payments Distribution Agency (PDA) are estimates. First and foremost, the account information that the debt counsellor (DC) captures on the PDA syst...
WHAT IS THE NATIONAL CREDIT ACT?
Debt review is a formal legal process that helps over-indebted consumers who are struggling to meet their monthly debt obligations. A new affordable monthly budget and the payment plan will be drawn up by the debt counsellor, showing a clear picture of your household spending vs. your income and a detailed plaThe National Credit Act (‘NCA’), 34 of 2005 was introduced by the government...
WHAT IS THE NATIONAL CREDIT REGULATOR?
The National Credit Regulator (NCR) is a statutory entity that was established following the enactment into law of the National Credit Act (NCA) 34 of 2005 with the main aim of regulating the credit industry. The National Credit Regulator is independent of the government. WHAT IS THE NCR TASKED TO DO? The National Credit Regulator is mainly tasked to do the following: The registration and dere...
WHEN TO APPLY FOR DEBT REVIEW?
You can apply for debt review / debt counselling under the following circumstances: If your accounts are 2-3 or more months in arrears. If you are struggling to pay your monthly instalments and you don’t know what to do. If you have received final demand letters from credit providers (Section 129) and lawyers. If you are getting endless calls from credit providers and lawyers demanding paym...
WILL THERE BE PERMANENT RECORD OF HAVING APPLIED FOR DEBT REVIEW?
This is one of the questions that I am constantly asked by consumers who are faced with the decision to place themselves under debt review. It is a very good question to ask because one has to be aware of all the pros and cons of any debt solution before they sign up. When a consumer applies for debt review, the consumer’s profile is flagged as under debt review on credit bureaus. After paying...
WILL THERE BE EARLY SETTLEMENT PENALTIES UNDER DEBT REVIEW?
When you are under debt review and say you win the lotto or run into some money and you want to pay off your debt, there are no penalties for early settlement. It is in fact quite the opposite. The consumer under debt review is eligible for a discount for early settlement just like any other consumer who is not under debt review. The person under debt review needs to call all his / her credit prov...
WHAT IS A CREDIT BUREAU?
In terms of Section 70 of the National Credit Act (NCA), a credit bureau is an entity that collects, compiles and report consumer credit information filed from any credit provider for the purposes of credit scoring or credit assessment. WHAT IS THE ROLE OF THE CREDIT BUREAU? When a consumer approaches a credit provider and applies for credit, the credit provider will ask a credit bureau for yo...
WHICH OF MY DEBTS ARE COVERED UNDER DEBT REVIEW?
When you appply for debt review all the debts for which a credit agreement was signed between you and a credit provider will be included under debt review. The following debts will be included under debt review: home loans, vehicle finance, credit cards, retail / store cards, overdrafts, personal loans, micro-loans When you apply for debt review we will exclude from the application rent to buy...
WILL CREDIT BUREAUS BE NOTIFIED?
We send your details to all credit reporting agencies advising them of your credit counselling status. ...
HOW DO YOU DETERMINE WHAT MY MONTHLY PAYMENT WILL BE?
We will look at your monthly income and consider your living expenses. A recommendation is then made on the amount you can reasonably afford to pay each month. One of our consultants takes you through your budget and advises your monthly payment. ...
WHEN IS MY FIRST PAYMENT DUE?
We send your details to all credit reporting agencies advising them of your credit counselling status. ...
WHAT HAPPENS IF I MISS MY MONTHLY REPAYMENTS?
If you miss a monthly payment, credit providers will terminate the plan and institute legal proceedings. To avoid this, it is important that you disclose your complete situation so that we work out a more affordable debt repayment plan. Should there be any change in circumstance notify your consultant. ...
WHAT HAPPENS IF CREDIT PROVIDERS DO NOT ACCEPT THE PROPOSED DEBT PLAN?
Credit providers can either accept or reject the debt plan. Should they reject the repayment plan, our legal team refers the matter to a Magistrate’s Court, for a final ruling. ...
CAN I APPLY FOR MORE CREDIT WHILE UNDER DEBT REVIEW?
In terms of section 88(1) of the National Credit Act (NCA) 34 of 2005, a consumer must not incur any further charges under a credit facility whilst under debt review. When a consumer applies for a debt review, they are flagged as under debt review. This implies that in a case where an application is lodged by a consumer who is under debt review, when the credit provider pulls up their credit r...
WHAT INFORMATION IS REQUIRED TO GET STARTED?
You will need all your creditors’ names, account numbers, total balances and minimum monthly repayments for each account. You will need to collect your most recent statements. ...
HOW LONG WILL I STAY ON DEBT REVIEW?
This is among the leading questions that l am asked on a daily basis during consultations with clients. “How long will l stay on debt review”? This question takes number one in terms of the frequently most asked questions. The best answer l can give to this question is that it depends on two factors. The two factors include the total outstanding debt and the monthly contribution amount that ...
WILL THE COLLECTION ACTIVITY FROM MY CREDITORS CONTINUE? I.E. PHONE CALLS AND COLLECTION LETTERS
Most creditors will stop once they receive the first payment. Should they continue you must advise them that you are under debt review with Simunye Debt Advisory and provide them with a copy of Form 17.2 or request that they contact us on 010 005 5350. ...
WILL THERE BE PERMANENT RECORD OF HAVING APPLIED FOR DEBT REVIEW?
This is one of the questions that I am constantly asked by consumers who are faced with the decision to place themselves under debt review. It is a very good question to ask because one has to be aware of all the pros and cons of any debt solution before they sign up. When a consumer applies for debt review, the consumer’s profile is flagged as under debt review on credit bureaus. After paying...