FREQUENTLY ASKED QUESTIONS
We have the Answers
What is Debt Review?
Debt Review was implemented by the National Credit Act (NCA) as a legal debt relief process. How it works is your Debt Counsellor proposes a reorganised debt repayment plan to your Credit Providers, allowing you to make just one lower payment towards all your debts each month. This plan is then declared a legally binding Court Order.
Thereafter, you will pay one affordable payment directly to a Payment Distribution Agency (PDA) once monthly. This payment will cover all of your unsecured debts and the PDA will divide it up between all of your credit providers.
You will make these monthly payments for up to five years, or until all of your debts are settled. Once your debts are paid off, your debt counsellor will issue you with a clearance certificate. The credit bureaus and your credit providers will also be advised that you have completed the Debt Review process.
Accordingly, your credit profile will no longer show that you are under Debt Review and you will be able to apply for credit once again
Is this a loan?
No, we do not lend you money. This is simply a payment plan allowing you to repay your debts back at a rate you can afford.
Can you cover all my debts?
We deal with all your debts – bond, car finance, credit card, store cards, personal loans, etc. – whilst making provisions for you to maintain your household bills etc
Will I lose my home or car if I go under debt review?
No, quite the opposite actually! Debt review can prevent you from losing your home and car, if credit providers are threatening to repossess and auction them off to recoup the debts you owe.
Will I have to change my bank account?
If you currently have any debt with your existing bank, we strongly advise that you open a new account with a bank where you have no debts. This protects your income and gives you full control of your finances with the assistance of DFD.
Do my creditors have to accept the debt plan?
No. Your credit providers have the right to reject the debt plan, and if this happens, a magistrates order will need to be obtained. Experience has shown that creditors are likely to accept a reasonable offer that shows you are committed to getting out of debt.
Can the creditors change their mind once this has been agreed upon?
No. As long as you maintain your agreed payment, they are not able to take further action.
How much will I have to pay each month?
The monthly payments are based on what you can realistically afford, having taken into account all of your day-to-day living costs
Debtfree Direct can help stop the downward spiral and offer real solutions to your debt problems. Experience has shown that we can restructure your debt, putting you back in control of your life
Debtfree Direct is a debt management company wholly focused on helping to resolve the debt problems of individuals. We operate across the whole of South Africa with our head office in Durban.
We differ from other debt companies in that we offer a comprehensive range of services and solutions not simply debt counselling, each tailored to your own individual circumstances, whether you own a property makes NO difference. These can range from debt consolidation, debt management, debt reduction and debt elimination.
Importantly, we have a solution to help ALL our clients and our number one goal is to help you solve your debt problems. Our staff are fully qualified debt counsellors and we are registered with the National Credit Regulator (NCR).
