Your checklist of the Debt Counselling Process
The debt counselling proses was introduced by the national credit regulator to assist debt stressed over-indebted consumers.
A registered debt counsellor can help these consumers by developing a repayment plan, which is affordable to you as well as acceptable to all your Credit Providers
5 Steps over 60 business days
Step 1: Debt Assessment (It’s free of charge and only takes a few minutes)
Day 1In step one we will assess your financial possession. you will need to complete our online debt assessment form and provide us with the details of your financial situation.
With your information and the information from the credit Bureaus, Our team of Debt Counsellors will do an initial assessment to check that you are over-indebted or not
You have to be completely honest when you complete the application form.
Step 2: Notify CP’s of application for Debt Counselling
Day 1- 5Your Debt Counsellor will contact all your Credit Providers and the Credit Bureaus to verify your debt by sending out a Form 17.1. You will be listed on the Credit Bureaus as under Debt Counselling. This listing will remain until you have repaid your debt or when a Clearance Certificate is issued. Repayment terms will be negotiated with all Credit Providers. Your interim payment plan is loaded at your Payment Distribution Agency (PDA).
You need to commence payment in line with the interim repayment plan.
Step 3: Over indebted notice
Day 6 – 30Credit Providers will confirm outstanding balances and your Debt Counsellor will notify your Credit Providers and Credit Bureaus that you are over-indebted by sending a Form 17.2. Debit Orders, for debt repayment only, need to be cancelled at this point to allow the interim repayment plan to kick in.
You need to sign a Debit Order cancellation on your original credit agreement and submit this to your Credit Providers and then make new payments as per interim repayment plan.
Step 4: Repayment Plan
Day 31 – 45Your repayment plan will be finalised. Credit Providers will either accept or reject your repayment proposal. This will enable your Debt Counsellor to finalise your repayment plan and to submit this to your PDA. Your PDA will collect a single payment from you and distribute the payment to all your Credit Providers. You will receive a SMS to notify you every month. At this point your Debt Counselling Court application can be finalised. You will be requested to sign an Affidavit. Do not be afraid to do this – the law is on your side as long as you follow the process. Your Debt Counsellor will assist you all the way.
You need to sign the Affidavit and keep up with the payments according to the plan.
Step 5: Court Order
Day 46 – 60A Court date will be obtained by your Debt Counsellor. This usually is after the expiry of the 60 days. The aim is to obtained approval from Court on the proposed Debt Counselling plan. As long as you make payment you are protected. Your Debt Counsellor will monitor the process and advice you accordingly along the way.
You need to continue with payments and refer all enquiries to your Debt Counsellor.
The Court order will confirm repayment plan. You need to keep up payments.
Take our 2 min Online Debt Assessment and find out whether you are over indebted or not. These 7 carefully designed questions reveals tell-tell signs of unmanageable debt. Take Our Free Debt Assessment.