No. Inf fact, Debt Review however save your home and vehicle. However, this willdepend on your unique circumstances. Factors that will determine this include:
- 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 to 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? For example, quad bikes and jet skis may be regarded as luxury vehicles, therefore, may have to be returned to the bank.
- Are you giving your full cooperation in the program?
The bottomline remains that you will always be in a better position to keep your home and vehicle while you are under Debt Review, rather than trying to fight off the Creditors yourself.
It is different for everybody as every situation is unique. In order to lower your monthly instalments, we have to extend your repayment periods. In some cases we manage to convince Credit Providers to lower their interest rates, which means that your repayment period will not be stretched out too much.
Your debt repayment plan will indicate exactly when your last day of payment will be.
No, you do not have to appear in Court as your Debt Counsellor will be the applicant and you will be a respondent. As soon as our attorneys notify us of the outcome, we will notify you of the same immediately.
In the unlikely event that the magistrate requests your presence, it will most likely be to establish certain facts. You will not be questioned by any attorneys or anything like that as this will be a court application and not an action procedure.
While you are under Debt Review, a flag indicating that you are under Debt Review will be present behind your name at the Credit Bureaux. Once you have satisfied your debt obligations, we will instruct the Credit Bureaux to remove the flag and there will be no indication that you have ever been under Debt Review.
However, if you do not apply for Debt Review, your situation can become much worse. If you skip monthly instalments on any of your Credit Agreements, whether it is a Mortgage Bond or a mere clothing account, this will be listed as non payments.
For purposes of obtaining credit in the future when you are back on your feet again, you should opt for Debt Review rather than juggling your Credit Providers by paying them less than your original instalment or not paying all of them timeously.
Debt Counselling evolved a great deal since it was launched by the NCA in June 2007. As is the case with the implementation of almost all new legislation, all the grey areas in the Act had to be found and tested in court in order for the Act to run smoothly. We are convinced that the industry has already reached the point where Debt Counselling is now running the way the legislator intended it to. We have successfully helped thousands of people since the inception of Debt Counselling back in 2007 and we are happy to see that more and more people are realising that the system works. So the answer is yes. Debt Counselling does work.
In some isolated cases there were bad apples in the industry in the form of Debt Counsellors who were in it for a quick buck. Most of these bad apples have since been worked out of the system, ensuring a dependable industry that is helping thousands of South Africans deal with their financial distress. South Africa has managed to bring Debt Counselling to a point where it is regarded as one of the most successful of its sorts in the world.
It is imperative that you choose the correct Debt Counsellor though, as we are of the opinion that there are still certain Debt Counsellors in the industry who do not possess the necessary skills, competence and experience to offer you the full benefits that Debt Counselling can provide.