Vehicle finance will be included in the debt review and there will be payment plan negotiation with your credit providers. Provision for fuel and maintenance will be provided for in your budget.

You will start immediately if it’s not too late in the month. Otherwise you will start making one reduced repayment from your next salary date. This is one of the great benefits of debt review, bringing you immediate financial relief.

NO!!! There is no black-listing but if the Debt Counsellor finds the consumer to be over-indebted, they add a flag to the consumer’s credit record asking creditors not to lend the consumer money because he or she is over indebted.

Each month after pay day, you will make a single monthly debt repayment as calculated by your Debt Counsellor, to a Payment Distribution Agency (PDA) as registered with the National Credit Regulator. The PDA will in turn pay each of your creditors in proportion to your total debt outstanding.

All secured lending such as property and vehicle finance can be included in the debt counselling application except where judgement has been obtained or a Letter of Demand (also known as a Section 129 Notice) has been issued. Unsecured lending such as credit cards, store cards, and personal loans must also be included in the debt review application. Service agreements such as cell phone contracts, levies in arrears, electricity bills, pharmacy accounts, school fees etc. are not included in the debt review process

You will no longer pay your credit providers directly. If you are under debt review, the National Payment Distribution Agency (NPDA) collects the required funds from you and distributes the agreed monthly repayments to all your credit providers on your behalf.

Debt Counselling was formally introduced by the National Credit Act to help over-indebted consumers, especially in our current economic crisis. The goal of Debt Counselling is to develop a repayment plan which is affordable to you, as well as acceptable to all your credit providers. Debt Recon will restructure your current monthly payments, and obtain a court order on your behalf.

*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. Debt Counselling was brought in to replace Administration, and is a much better option.

Sequestration is a legal process whereby all your debts are written off, and gives you a fresh start in life. This option is available to you if your liabilities exceed your assets, and your available income is not enough to restructure your current credit agreements by submitting a reasonable payment proposal to your creditors.

In terms of the National Credit Act we, as Debt Counsellors, are allowed to lower your monthly payments by extending your repayment periods and in some cases by lowering your current interest rate.

We aim to have you completely debt-free in 5-7 years, however this is influenced by your own unique circumstances. Your Debt Review can be ended as soon as you are in a position to resume payments in terms of the original credit agreements. For most consumers, this means your mortgage bond will be your only remaining obligation when you leave Debt Review.

No, we will never contact your employer to obtain any information or to confirm anything. Your debt review application is treated as fully confidential through the entire application and debt review process.

  • Your ID document
  • Your payslip
  • 3 Months bank statement reflecting your salary
  • Antenuptial contract (if applicable)
  • List of monthly expenses
  • List of all income
  • Details of Accounts

Debt review is not a credit agreement, therefore allowing clients to rent property if they are under the process. DebtRecon can provide a letter to the clients letting agent or landlord indicating the amount needed for the rent payment is available in the client’s budget.

Debt Recon operates nationwide, from a central office as common practice, as all banks operate from central offices. Operating from one place helps DebtRecon better control business processes and develops them when the need arises. We have attorneys in every jurisdiction of South Africa.

When in debt review the first month’s payment is a once off debt counselling fee. It is worked out according to your unique situation. It is not necessarily R6000, but according to the National Credit Regulator this fee may not exceed R6000 (excluding VAT). This fee is a once of fee, and not a repayment plan.

In order for debt review to be rolled out, a court order has to be granted. The court order is put in place in order to legally protect clients from being hassled by credit providers, as well as to prevent creditors from taking legal action against them.

DebtRecons expert legal team is responsible for combining all debt review court applications from documents, which are completed and signed by clients, as well as their credit providers and the payments cascades that they have set up.

The process with regards to granting a court order for a debt review case varies according to the jurisdiction of the court it has been sent to.  Certain courts require the actual debt review client to be present at the court at the time of the court order, however in the vast majority of cases, the Magistrate’s Courts would rather allow the matter to be dealt with by our attorneys in the correct jurisdiction.

Cancelling your debt review is possible. A signed letter with an instruction for us to cancel is all it takes. A cancellation fee of 75% of the debt counsellor fee is payable if you have not yet paid your first instalment and we have calculated your payment plan.

I would suggest that the consumer get their credit report– available free every 12 months on

0861 482 482. The credit report will display if the consumer is no longer under debt review on the front page of the credit report. If the credit report does indicate that the consumer is still under debt review, please call us and request that we investigate why the clearance certificate has not been received and the credit report not updated.

Yes, a consumer should visit a Debt Counsellor urgently if they receive a letter of demand. Debt Counsellors can attempt to negotiate with creditors on a letter of demand or warrant of execution but if a court judgment has been taken they cannot do anything.

You will be issued with a letter to this effect from the Debt Counsellor, as well as a unique NCR reference number.

No, it is a conflict of interest. Always talk to your Debt Counsellor, who is independent of creditors. DEBTRECON is here to help you with our team of Debt Counsellors and Consultants to get you back on track, settle your debt and start a new debt-free life.

It is already a Court Order and only a Court can make a change to the Court Order.

All payment distributions must take place through a registered Payment Distribution Agency, such as the NPDA. Arrangements for bulk or once-off payments can be arranged through your Debt Counsellor or debt counselling administration office. You must then contact your Debt Counsellor to make arrangements to restructure your repayment plan.

No, once notification has been given to your credit providers, your accounts will be flagged, indicating to credit providers not to provide you with further credit because you are over-indebted. Once your debt has been paid in full and a Clearance Certificate is issued to you by your Debt Counsellor, the flag will be removed and you will be able to enter into new credit agreements.

You can read more about the National Credit Regulator (NCR) on their website atwww.ncr.org.za. For more information about the National Credit Act, visitwww.ncr.org.za/the_act.html.

No, there is no blacklisting but if the Debt Counsellor finds the consumer to be over-indebted, they will add a flag to the consumer’s credit record to indicate to credit providers not to provide you with further credit because you are already over-indebted. The flag will be removed once the debt has been repaid and when the consumer is no longer over-indebted.

No, the debt review process does not provide you with payment holidays. You must still make monthly payments, as agreed with your accredited debt counsellor, from the first month you apply. If you fail to make your monthly payments you are in default and the Debt Counsellor and/or the credit providers could terminate your debt review. This places you at risk as your credit providers can proceed with legal action

Yes, during the debt review period, your name will be listed with a credit bureau as being under debt review. Once the debt has been repaid the Debt Counsellor will issue a Clearance Certificate and instruct the relevant credit bureau to remove the debt counselling notation from your record. This means that all records that you were under debt review will be removed. Once this process is completed you should be able to access responsible new debt if required.

Your home and vehicle must be insured. This is often a condition of your financing contract. You must keep paying the full instalment for insurance and other policies, even while you are under Debt Counselling.

The requirement is if you are over indebted, struggling to make ends meet, arrears on accounts and minimums salary left after making your monthly expenses.

Most people, at some stage of their life, have acquired debt. It’s how you deal with and manage your debt that makes the difference. Maybe you lost your job, experienced a medical issue that resulted in a massive medical bill or you overspent on your credit cards, whichever the reason, it’s best to tackle debt early on..

This is unlikely. It might be wise to sell some assets that you do not need but this will be discussed with you and where needed you can consult with a FAIS advisor. Normally the debt review process helps consumers keep assets like their home and car. This is commonly called “good debt”.

It is never too late to get good advice. Even if one of your debts has a summons all your other debts are no doubt pressurizing you too. A Debt Counsellor can try make arrangements with your creditors even those who have a judgment or garnishee order. They might not be part of the Debt restructuring Court Order but will be taken into account in planning your monthly costs.

Each consumer’s situation is different but many consumers are able to finish repaying their debt within 60 months. In most cases this means they have paid off all their smaller debts and only have a bond left. At this point many consumers then withdraw from the process and pay their creditors directly. In some consumers cases they are only under debt review for a few months such as during maternity leave or while waiting for the sale of an asset.

When a creditor gives a consumer credit that they know they cannot repay that is called reckless credit. There are also other types of illegal credit agreements. If you think this has happened to you a Debt Counsellor can investigate to see if reckless Credit has been granted. If this is the case a court could order the debt not to be repaid or postpone repayment on that deb