DebtBrokers and Counsellors | services

By: Debtbrokers  11-11-2011
Keywords: debt, Debt Counselling, debt counsellors

Step 1: Enquiry

Contact the debt counsellor or complete the Enquiry section on the Contacts tab of this website and we will contact you. We will briefly explain the Debt Counselling process to you.

Step 2: Application

- A copy of your ID Document / Passport

- A copy of your payslip (not older that 60 days)

- A copy of your last 2 months bank statements

- A copy of your last 2 months credit card statements

- A copy of all creditor and loan statements

- A copy of your marriage certificate

Step 3: Notification

All credit bureaus, your credit providers and the NCR are being notified that you are now under debt review. Your creditors cannot continue with collection steps against you until the debt review process have been completed.

Step 4: Review

We will complete a debt restructuring plan and submit the new instalment proposals to all your credit providers. If the creditors accept the proposal, you start paying the agreed monthly amount (by submitting one Debit Order Form). If the creditors do not accept the proposal, we approach the court to have the proposal accepted.

After the creditors agreed on the new instalment proposals, funds are being transferred to the Payment Distributor Agency for distribution to the creditors.

Step 5: After-Care

We will follow up payments with the Payment Distributor Agency on a monthly basis until all debt has been cleared, where upon a clearance certificate will be issued and your name taken off from all credit bureaus.

Application

  • A copy of your ID Document / Passport
  • A copy of your payslip (not older that 60 days)
  • A copy of your last 2 months bank statements
  • A copy of your last 2 months credit card statements
  • A copy of all creditor and loan statements
  • A copy of your marriage certificate

Upon receipt of your completed application form and requested documentation, we will contact you to discuss the way forward.

Very Important: If you and your spouse / partner share an income and expenses, then fill in your spouse / partner’s details in the space provided on the application form. Should you be married In Community of Property, it is compulsory to fill in your spouse details in the space provided.

Who qualify for debt counselling?

South African citizens that receives an income.

Is the process confidential?

Yes.

What are the costs involved?

The fee structure for all registered Debt Counsellors are:

  1. Restructuring Fee (First instalment of the debt repayment plan by the Payment Distributor Agency)
    This fee will vary depending on the amount of money available to repay debt, but will not exceed R3000 (single application) or R4000 (joint application - for you and your spouse / partner).
  2. After-care Fee (Commence in the second month of instalments)
    All payments throughout the debt review process are being monitored, the fee for this is:
    5% of the monthly instalment of the debt repayment plan (maximum R300) for 24 months, then 3% of the monthly instalment of the debt repayment plan (maximum R300) for the remaining period of the debt rearrangement plan.
  3. Rejection Fee Should the application be rejected a fee of R300 will be charged.

Do I have to meet with the Debt Counsellor?

No.

How long does the process take?

After approval of your application, your debt will be restructured within 60 working days. You will be under debt review until all your debt has been repaid and the debt counsellor issues you with a clearance certificate.

What does it mean to be under debt review?

  • You will be listed on the credit bureaus and therefore, you may not apply for credit or continue using existing credit facilities.
  • No legal proceeding can be taken against you whilst under debt review.
  • You need to disclose all information to the debt counsellor - should you act outside of these instructions - the debt review will be terminated.

Can I still apply for debt counselling after being summonsed / have judgements against me?

Yes. The amount being summoned for will not form part of the restructured payment plan, but we will negotiate with the specific creditor to agree to include this in the restructured payment plan, although they are not obliged to accept it.

Can creditors refuse the repayment proposal?

Yes, the creditor can reject the repayment proposal, although they are likely to accept a reasonable offer. Should they reject the proposal, a magistrates order will need to be obtained.

Will I be listed on Credit Bureaus?

Yes. After completion of the application form - all credit bureaus will be informed that you are under debt review. After you have received a clearance certificate stating that your debt has been cleared - your name will be taken off from the Credit Bureaus.

Keywords: Credit Providers, debt, Debt Counselling, Debt Counsellor, debt counsellors, Registered Debt