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FAQ's

What is Debt Counselling?
Debt Counselling is a solution for over-indebted borrowers that ensures sufficient protection against loss of assets and assists with the restructuring of debt so that the consumer can meet his / her basic living expenses.Debt counsellors negotiate with your credit providers on your behalf to arrange an affordable repayment amount.

What is the purpose of a Debt Counsellor?
The purpose of a Debt Counselor is to provide a solution to enable the client in meeting his / her basic living expenses. The purpose of a Debt Counselor is to provide a solution to enable the client in meeting his / her basic living expenses.

What debts are included?
All credit agreements with credit providers.

This includes:

  • Secured Debts:
    • Home Loans,
    • Vehicle Finance
  • Unsecured Debts:
    • Credit cards,
    • Store cards,
    • Personal loans

Excludes service agreements such as water and lights accounts, as well as any accounts in which judgement has been taken.

Can I apply for debt review if you are unemployed?
No, unfortunately you cannot apply for debt review if you are unemployed?

Can a bank or credit provider provide Debt Counselling?
No, it is a conflict of interest. Mzansi Debt Counselling is here to help consumers manage their debt and build wealth.

What is the difference between Debt Counselling, Administration and Liquidation?
Debt Counselling: is where a Debt Counselor restructures instalments to allow the consumer to pay his or her debt and meet his / her basic living expenses. Debts are paid monthly.

Administration: is a legal process, where the instalments are reduced, but creditors only receive payment every three months and the term of repayment is much longer than under Debt Counselling. Debt must be less than R50 000 to qualify.

Liquidation: is a legal process where assets are sold to try and lessen the debt and the Court will appoint somebody to manage your finances. This is costly and you will be blacklisted for 30 years or until the Court declares you as rehabilitated.

If a consumer is under administration can the consumer under go Debt Counselling?
No, administration is a parallel legal process with similar outcomes.It has to be either administration or Debt Counselling.

What fees must be paid?
There is a initial R50 consultation fee. Other fees payable to the Debt Counselor will be in accordance with the scale as provided by the National Credit Regulator.

What is a credit bureau report and how do I get mine?
A consumer can obtain a their credit report free of charge once a year by calling,
Experian: 0861 10 5665 or Transunion: 0861 482 482.

When is a consumer under Debt Review?
After the client has successfully applied for Debt Review and the Debt Counselor has notified the credit providers.

What proof will I have that I am under Debt Review?
You will be issued with a letter to this effect from the Debt Counselor.

Can I apply for credit while under Debt Review with a Debt Counselor?
No.

Will I be black-listed if I apply for Debt Review with a Debt Counselor?
No. If the Debt Counselor finds the consumer to be over-indebted, he or she will notify the consumer's creditors asking creditors not to lend the consumer money, because he or she is already over-indebted. This will be removed once the debt has been repaid and when the consumer is no longer over-indebted.

When will my listing be removed form the Credit Bureau?
The moment you are no longer in arrears and have paid off most debt excluding bonds, the Debt Counselor will remove you from Debt Review and notify credit bureaus that you are no longer under Debt Review or over-indebted even though you may still have to pay off your bond. In other words, it is a sign that you have now learnt how to effectively manage your money.

What will happen if a creditor lends the consumer money while the consumer is under Debt Review?
The Debt Counselor may refer the matter to court for a declaration of reckless lending.

What accounts can be included in a Debt Review process?
All credit agreements can be included, but not service agreements such as water and lights accounts or cell phone accounts. Any accounts on which judgment has been taken cannot be included.

Why can a Garnishee not be included?
A Garnishee (Emolument Attachment Order) is already a Court Order and only a Court can make a change to the Court Order. A Garnishee (Emolument Attachment Order) is already a Court Order and only a Court can make a change to the Court Order.

Can a consumer see a Debt Counselor if they have received a letter of demand?
Yes, a consumer should visit a Debt Counselor urgently if they receive a letter of demand. Debt Counselors can make arrangements on a letter of demand or warrant of execution, but if a court judgment has been taken they cannot do anything.

What happens when I receive a letter of demand?
You have less than 20 days to see a Debt Counselor for help.

Can I still go under Debt Review if I have been black-listed by a creditor?
Yes, you can be placed under Debt Review at anytime, provided a Debt Counselor has declared you over- indebted.

Must I continue to pay my accounts?
Yes. The creditors cannot take legal action for 60 business days after you apply for Debt Review. However, you must continue to make payments, because if your application is unsuccessful, you will be in default and the creditors can take legal action.

If a consumer is not over-indebted, can they still apply for Debt Review?
No, although he/she can contact a Debt Counselor credit counselling.

Will the consumer still be able to use accounts and credit facilities?
No, once notification has been given to the credit providers, the accounts will be blocked from further use.

If a consumer has additional cash, can the consumer pay the creditors directly?
No, there is a restructuring plan, in place. The consumer must contact the Debt Counselor to make arrangements.

What happens if a credit provider does not accept a repayment plan?
The Debt Counselor can calculate a new proposal or refer the matter to the Court for a decision.

What happens if a consumer has been incorrectly black-listed by a credit provider?
Yes, the consumer can phone the credit bureau and request that the information be amended or approach a Debt Counselor for assistance.

How do I get my Credit Report?
You can get your credit report from:

TransUnion ITC
Tel : +27 (0) 11 214 6000 / 0861 482 482
Web : My Credit

Experian
Tel : +27 (0) 11 799 3400
Web : Credit Expert

       
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