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The Debt Movement team is here for you.
Many South Africans do not understand how Debt Counselling and Debt Review can help them, so here are some answers to questions that the Debt Movement team is frequently asked.
Debt Counselling is one of the debt relief measures available to South Africans and provided for in the National Credit Act. This process is intended to assist over-indebted consumers struggling with debt, through budget advice, negotiation with credit providers for reduced payments and restructuring of debts. Debt Movement is registered with the NCR as a Debt Counsellor and can offer Debt Counselling and Debt Review services.
Yes, Debt Review and Debt Counselling are the same thing, and the terms are used interchangeably. Debt Movement South Africa offers Debt Review and Debt Counselling to over-indebted South Africans.
Any South African experiencing or who is likely to experience debt-related problems and is having difficulty making their current monthly payments. A person who is over-indebted may approach a Debt Counsellor directly, or may be referred to a Debt Counsellor such as Debt Movement by their creditor/s, the Magistrate Court, or the National Credit Regulator. The person must choose their own Debt Counsellor and should also have a distributable income which will be used to offer reduced payments to the credit providers.
Debt Review is the same as Debt Counselling and is a service offered to over-indebted South Africans by Debt Movement. Debt Review is a government legislated process created to assist and protect over-indebted South Africans. Debt Review is a process in which a person enlists a Debt Counsellor to help them manage their debt. Once in Debt Review, a person is protected from debt collectors. Your Debt Movement Debt Counsellor will contact all of your creditors and inform them that you are in Debt Review. This immediately stops the harassment by debt collectors. Your Debt Counsellor will then begin the process of renegotiating and consolidating your debt, reducing your interest rates, extending your repayment terms, and restructuring your debt to align with your financial situation, enabling you to manage your repayments while still having disposable income to manage your living expenses. The Debt Review process also legally protects your assets from repossession, ensuring your creditors cannot seize your house, your car, or any other assets.
Yes, all Debt Counsellors must be registered with the National Credit Regulator. Debt Movement is registered with the NCR. Our registration number is NCRDC3268.
No, the administration order must first be rescinded by the Magistrates Court where it was granted before you can apply for Debt Counselling. If you have any queries, contact Debt Movement on 031 010 0509 or info@debtmovement.co.za.
There are set fees as per the fee guideline from the National Credit Regulator that people should be charged. The current fee structure can be viewed here: https://www.ncr.org.za/documents/debt%20counselling%20fee%20structure%20guideline.pdf
Debt Counsellors are not allowed to charge above the set fees.
A person who is under Debt Review can make payments through a registered Payment Distribution Agent (PDA) or make payments directly to credit providers.
A consumer may not make any payments, except the R50.00 Debt Counselling application fee, directly to the Debt Counsellor. Debt Counsellors are prohibited from collecting and distributing Debt Counselling funds to credit providers.
Debt Movement has partnered with one of South Africa’s most established PDAs.
The role of the PDA is to:
Yes, a person can change Debt Counsellor by looking for a new Debt Counsellor. The new Debt Counsellor will take over the file from the previous Debt Counsellor and continue from where they left off. The consumer is not required to pay the new Debt Counsellor fees which were already paid before to the previous Debt Counsellor, except for the after-care fees which are due to the new Debt Counsellor.
If you are currently unhappy with your Debt Counsellor, Debt Movement can assist.
If you are in financial difficulty, then Debt Review (also known as Debt Counselling) is a very good thing. The Debt Review process has countless benefits to over-indebted South Africans. These include:
The Debt Counsellor must follow the guidelines issued by the National Credit Regulator regarding Change in Circumstances. In this process, the Debt Counsellor negotiates new or interim terms with the credit providers to allow for the change in circumstances.
In this case, a person should contact the National Credit Regulator to lodge a complaint.
The NCR will investigate the matter – info@ncr.org.za
Many people consider Debt Consolidation loans as a solution to their financial difficulties. While this solution may simplify and even reduce repayments, this strategy lacks many of the benefits of Debt Review. For instance, the Debt Review process legally protects your assets from seizure by creditors and also legally stops harassment and calls from debt collectors and debt collection agencies.
Furthermore, while undergoing Debt Counselling, you will work with a professional Debt Counsellor like Debt Movement who will renegotiate your terms with your creditors, restructuring your finances and budget in a way that enables you to manage your debt repayments while still having additional cash each month to cover other living expenses.
People married in community of property (COP) cannot apply for Debt Counselling without consent from their spouse. Only people married out of community of property can do so. If married in community of property, a joint Debt Counselling application is necessary.
If you are unsure, Debt Movement can assist you with advice and guidance. Contact us on 031 010 0509 and info@debtmovement.co.za
No, a person can only exit Debt Counselling by paying off all their debt obligations and obtaining a clearance certificate. This can be achieved if all your short term debts are settled. If there is a home loan account it has to be up to date in terms of the Debt Counselling re-arrangement order before a clearance certificate is issued.
Your name will only be connected to Debt Review for as long as you are undergoing Debt Counselling. Once you have completed the process and settled your debt, your Debt Movement counsellor will issue a Debt Review Clearance Certificate and the credit bureaus will update their records accordingly.
While you are under Debt Review, you will be listed as such with the credit bureaus, meaning that you will not be able to apply for additional credit or loans. However, once you have exited Debt Review, your credit score will be reinstated and there will be no long term negative consequences.
One of the biggest benefits of Debt Review, or Debt Counselling, is that all of your assets are legally protected from repossession, bringing you unimaginable peace of mind. The only potential negative of Debt Review is that, while under Debt Review, you will be unable to apply for additional credit or loans.
In theory, a loan that consolidates all of your debt into a single monthly repayment sounds attractive, but this option seldom offers a lot of long term financial respite. Debt Review is a much better solution, offering the following:
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