What is debt counselling – video

When a consumer (client) realizes that he/she is over indebted and that some arrangements have to be made to make sure all monthly repayments are met.

The consumer contacts a registered Debt Counselor who supplies a regulated form 16 and assists with the completion thereof. As soon as this form is completed the consumer will have formally applied for debt review in terms of the Act.

All requested documentation as on the application form is supplied by the consumer within 5 days of signing the form 16.

With the information and supporting documents supplied by the consumer the debt counselor now informs all the known creditors of the consumer that the said consumer has applied for debt review. This is done with the regulated form 17.1 as well as 17.2

A formal analysis is done by the Debt counselor to determine if the consumer is indeed over indebted. This is a very simple calculation once all information has been taken into account. A consumer can only apply for debt counseling if his/her monthly disbursable amount (Nett income minus living expenses) is LESS than the amount required to service all obligations. AS EXAMPLE ONLY. If the consumer only has R5000 to pay his/her debt after the living expenses have been accounted for, and the total monthly debt repayments are R6000 the application would be a success.

If the consumer is indeed over indebted according to the above method all creditors would be informed of this for their record.

The restructuring process can now begin. The Debt counselor will now restructure and renegotiate all credit agreements and present these proposed terms to all creditors. This new proposal will then restructure the consumer’s monthly commitments to be more affordable and ensure that all credit agreements get something every month.

The new proposal will now be sent out to all the creditors after it has been approved by the consumer. Should all creditors agree to a consent order that new arrangement will be made an order of court. If there are some creditors who don’t agree to the restructuring a court date will be allocated for the matter to be heard. At this hearing the magistrate will have no choice to grant the order if the debt counselor acted in terms of the Act and subsequently restructured the debt accordingly.

All disbursements of contributions will be handled by a registered Payment Distribution Agency (PDA). The PDA is regulated and governed by the Act. As soon as a restructuring proposal is agreed on by the consumer payments of the distribution amount will be paid over from the consumer directly to the PDA. The PDA in turn will disburse with the funds as per the restructuring proposals.

The Fee structure:

Debt counselors are entitled to a maximum of R6000 plus VAT for single applications

The Act allows for the following payment of Debt counselor fees as well as Legal fees.

The first payment made by the PDA will pay the debt counselors fee

The second payment will pay the legal fees

The third payment will be the first payment that creditors receive. This is done so that consumers don’t have to pay any money that they might not have up front, and to make the process affordable.

When the payments are being made to the creditors by the PDA there will be some agreements that will be paid up before others. As soon as this happens the Debt counselor must restructure the payments again to make sure any creditor is not paid more than he must receive and to disburse the surplus equally between the other to ensure that the process runs smoothly. For this the Debt counselor is entitled to a 5% after care fee not exceeding R400.

 

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Questions about debt counselling

Should your spouse apply with you?

If you are married in community of property, you and your spouse must apply for Debt Counselling together, as the law sees your joint estate as one single estate.

If you are married with an ante-nuptial contract, you can apply for Debt Counselling on your own. Your application will only cover your own income, assets and debts, but you must disclose if any of your assets or debts are jointly owned, i.e. not just in your own name.

Traditional African marriages are regarded as being in community of property, while Islamic religious marriages are regarded as being out of community of property.

How will your credit report be affected?

Your credit report will show that you have applied for debt review until a clearance certificate is issued. If you withdraw / your application is terminated / cancelled, this will be shown on your credit record for 6 – 12 months.

When all your debts are paid, a clearance certificate can be issued, and all history of Debt Counselling will be erased from your credit report.

Can you exit Debt Counselling before all your debt is paid up?

Yes. There are four ways that you can exit the process:

* You can choose to voluntarily withdraw from the process at any time.
* Your Debt Counsellor can cancel your application if you are dishonest, don’t disclose all your financial details or fail to follow instructions or advice.
*Your Debt Counsellor can also reject your application if your affordability installment is too low to create a reasonable proposal for your credit providers.
* Your credit providers can terminate debt counselling if you fail to make payments according to the final proposal, if your credit providers are dissatisfied with the amount you can afford to pay or if the requirements of section 86 of the National Credit Act are not met.

NB – Once you have exited the process, your credit providers can immediately take legal action against you for the full outstanding amount owed to them.

Can you access more debt?

No. You cannot and may not apply for any further credit while under Debt Review. This means you cannot use your overdraft, credit cards, retail accounts or any other type of debt. If you apply for further credit while under Debt Review, your application will be cancelled.

Can you skip payments to your credit providers at any time?

No. Although you cannot afford to pay the full installments on all your debts, you must make reduced interim payments to all your credit providers each month to show your commitment to repay your debt. It is your responsibility to make sure that your credit providers receive payment every month, even once the PDA starts making payments on your behalf.

Can you pay more than the amount on the final proposal?

Absolutely. You should continually try to increase your affordability, by increasing your income, reducing your expenses and selling unnecessary assets, to pay off your debt as fast as possible.

If you receive an increase, bonus or any extra income, please let the Debt Counsellor know so that we can pay extra on your debt. This will make your credit providers more likely to consent to your proposal, and will help you to pay off your debt faster.

Can any of your accounts be excluded from Debt Counselling?

If you have received a letter of demand or Summons for a specific account before you sign this Form 16, the credit provider can require the account to be excluded from Debt Counselling. If this happens, you will have to make voluntary arrangements with that credit provider to pay off the debt.

If you have referred the Summons to an attorney, you should inform your attorney that you have applied for Debt Counselling.

Why should you cancel the debit orders that pay your debt?

To avoid double payments when the PDA starts making payments on your behalf.

Also to avoid any of your credit providers deducting more than the amount allocated to them in the final proposal, and not leaving enough for the remaining credit providers. This does not apply to debit orders for debts that cannot be included under Debt Counselling. Please follow up with your bank to make sure that your insurance and other policies will continue to be paid in full.

Why should your salary be paid into a savings account?

To avoid “money grabbing” or “set off” by the bank. While you are under Debt Counselling, you will not be able to access any overdraft facilities. Therefore, if your salary is paid into an account with an overdraft, your salary could be “set-off” to the full amount owed. If your salary is paid into a savings account, you can pay off your overdraft in smaller installments.

Should you keep paying your full insurance premiums?

Your home and vehicle must be insured. This is often a condition of your financing contract. You must keep paying the full installment for insurance and other policies, even while you are under Debt Counselling. The same applies to your rates and taxes as well as maintenance and services for your vehicle.

How long will the whole process take?

According to the National Credit Act, you should have a payment plan and a Court Date within 60 working days (about three months). The actual Court Date will depend on the specific Court.

Paying off all your debt depends on how much you make available to pay. You should be able to pay off your debt between five to seven years if you don’t have a house or car, and 10 to 30 years if you do.

What happens when the Court considers your final proposal?

The Court will consider whether all the steps in terms of the National Credit Act were taken. They will also consider whether they feel the final proposal is a reasonable solution for all parties. If your credit providers oppose the Court application, they will have to consider the credit providers’ arguments, and request certain changes before they can make an order.

Once the Court has made an order, it will be binding on both you and the credit providers. This means that your credit providers must accept payments as per the Court Order, but it also means that you cannot miss any payments, or your credit providers will immediately be able to get a garnishee order against you or repossess your assets. Once the Court has made an order, you will not be able to withdraw from Debt Counselling.

Skuldberading en skuldhersiening Marble Hall en Groblersdal

skuld hersiening en skuld berading Groblersdal en Marble Hall

Hulp met skuld helpkliënte in Groblersdal en Marble Hall en die res van suid-afrika

voor ‘n skuld beradings maatskappy soos Hulp met skuld enige klient kan bystaan  met hul skuld probleme, is die proses van skuld hersiening nodig.  identifiseer die skuld probleem en vind die geskikste oplossing.

Hulp met skuld voer n deeglikke skuldhersiening proses op alle hul kliënte se finansies uit, verseker dat alle skuldeisers geidentifiseer word en ‘n akkuraat oplossing geskep word.

Hulp met skuld bied die volgende tot hul kliënte wat wil aansoek doen om skuld hersiening:

• geen vooraf fooie

• geen addisioneel lenings

• een baie bekostigbare maandeliks paaiment aan skuldeisers

• geen onderhoude tensy u een wil he (alle konsultasies is gratis)

kontak Hulp met skuld vandag, en laat ons u bystaan met skuldhersiening dienste.

kontak besonderhede:

kontak nommer: 072 642 6641

faks nommer: 086 519 4004

epos:info@hulpmetskuld.co.za

webwerf:http://www. Hulpmetskuld.co.za

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Good vs Bad debt counsellors

Good vs Bad debt counsellors

What is the difference between a good debt counsellor and a not so good debt counsellor.

Clients often don’t have a choice as to who they will use to do their debt counselling and debt review. Many clients think that it is needed to see only a debt counsellor in their area. This is not the case. You can consult with any debt counsellor about your application for debt review and debt counselling. Next question. How is this possible if my debt counsellor is in Johannesburg and I am in Cape Town. Easy answer. The internet and phone lines. With today’s technology and fast paced lifestyle the process of debt counselling and debt review can be done without the client and the counsellor ever having to meet face to face. We here at Help with debt, with our extended family of friendly consultants, always like to have a more personal experience with our clients.

Let’s get to the point.

How do you know which Debt counsellor to choose to handle your application for debt review and debt counselling?

Firstly you have to make sure that the said debt counsellor is registered in terms of the National Credit Act and with the National Credit regulator. This can be done by contacting the NCR or visiting their website.

You must then make sure that the debt counsellor who will be handling your application actually wants to handle the application rather then just handling the fee you have to pay him. This is absolutely crucial. This debt counsellor will be “in charge” of your debt repayments for a long as you allow him to be. If he is only after the fee, he will not ensure that your creditors get paid according to the restructured agreement. He might forget to remove a paid up creditor and allow you to pay that creditor more than he deserves. Altogether, this debt counsellor might forget about your file entirely. Where does that leave you? Right where you are now.

Why is Help with debt, debt counsellors different?

  • We provide a complete analysis of all your income and expenses to ensure that the amount you have to contribute to the Pda is the right one for you, not us
  • We ensure that we provide you with a good budget and help you to stick to that budget
  • We make sure that we look at your payments as they go through. This way we can keep track of all payments and “soon to be paid up” accounts.
  • We would like to help you understand the rights you have as a consumer and educate you in handling your finances better so that you don’t become trapped in debt again.
  • We want you to call us as much as you like to find out whatever you want.
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Quick debt counselling process explained

The debt counselling and review company of Help with debt offers a debt counselling and debt review services to all South Africans, where we offer HELP to clients struggling to meet their full monthly debt repayments and as a result struggle to survive. As a part of our debt counselling and debt review services, we help over-indebted clients restructure their total debt obligations in a way which is affordable to them, as assessed by the HELP WITH DEBT, debt counsellor in charge of the application. The Application for debt review and debt counselling will be conducted in terms of the National Credit Act no 34 of 2005, as well as governance by the National Credit regulator (NCR).

The HELP WITH DEBT, debt counsellor will:

•             perform the debt review process,

•             prepare a restructured payment plan for client

•             and then propose this to their credit providers for acceptance.

Our well-organized admin team will notify all your credit providers that you have applied for debt review and debt counselling, and then negotiate a restructuring new payment plan with all your credit providers. The objective of this process is to obtain a consent order from the court to start paying debts as agreed by all parties involved. If credit provider disagrees with the restructure plan, and cannot propose a reasonable counter-offer, then the case will be referred to a magistrate’s/tribunal court and our attorneys’ will defend your matter in court.

We look forward to help you in creating a better cash flow for your living conditions to better.

How debt counselling can help you

Debt counselling and debt review is expected to offer people who are over-indebted a way to negotiate a more affordable repayment plan with their creditors. The process of debt counselling is provided for in the National Credit Act (NCA), , and applies to credit agreements entered into before and after that date.

If you are struggling to pay your debts, facing legal action or you are about to have your vehicle and/or property repossessed, you can approach a Help with debt, debt counsellor and ask him or her to review your situation.

Alternatively, a credit provider, such as your bank or a retailer, may refer you to a Help with debt, debt counsellor if you fail to meet your repayment obligations.

There are no restrictions on who can use Debt counselling and debt review trough Help with debt,   – anyone from any income group and who owes any amount of debt can apply for debt counselling. Through Help with debt

Help with debt, Debt counsellors are entitled to charge you an upfront fee of R50 plus VAT for an application to have your debt reviewed. A Retainer of R300 will be kept as early cancellation fee. This R300 will be deducted off the Rehabilitation fee payable

Most also charge you substantially more for an initial review of your debts, and Help with debt may offer to review your debts on an ongoing basis, for which they will also charge a fee. But as yet there are no set amounts that Help with debt, debt counsellors may or may not charge for initial and ongoing reviews.

The National Credit Regulator (NCR) plans to help lower-income earners by paying their Help with debt, debt counsellors’ fees.

Before determining whether or not to accept your application to review your debt, a Help with debt, debt counsellor must consider your debts and financial obligations to determine whether you are over-indebted. The NCA describes over-indebtedness as a situation in which you are or will be unable to meet all your debt obligations timeously.

A Help with debt, debt counsellor will investigate your existing income and your income-earning prospects, and all your current financial obligations.

Once a Help with debt, debt counsellor has accepted your application, he or she will inform all your creditors and every registered credit bureau that you have applied for debt counselling. You will not be able to access any further credit until your debts have been repaid. You will even have to cut up your credit and store cards.

The Help with debt, debt counsellor will then consider your debts and financial obligations to determine what you can afford to repay each month, and will enter into negotiations with your creditors to restructure your debt.

If your creditors agree to the repayment proposal put forward by the Help with debt, debt counsellor, the counsellor will apply to the National Consumer Tribunal for a consent order for the repayment plan.

If your all creditors do not agree to the plan, the Help with debt, debt counsellor will take the plan to a magistrate’s court, and the court will have to decide what is a fair repayment plan. In this case you could face further charges for the cost of hiring lawyers to represent your case in court.

Reckless lending
If a Help with debt, debt counsellor suspects that you were given credit recklessly because you could not afford it, he or she can ask a court to decide if this was indeed the case and if so to suspend the agreement or set it aside.

Once your repayment plan is agreed, you will make payments to a distribution agency registered with the NCR and it will distribute what you pay to your creditors. The agency will be paid by way of a fee from the creditors.

Debt counselling Limpopo

  • Skuldberading Limpopo

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  • Die nuwe Nasionale Kredietwet (No.34 van 2005) het op 1 Junie 2007 in werking getree. Die Wet stel nuwe vereistes aan kredietverskaffers, wat beslis ‘n uitwerking op kredietverlening deur NWK gaan hê. In hierdie artikel word gepoog om te verduidelik hoe hierdie wetgewing die NWK-klant raak. Die Nasionale Kredietwet vervang die Wet op Kredietooreenkomste en die Woekerwet.Die hoofdoelstellings van die Wet is die volgende:
  • Verhoed roekelose kredietverlening;
  • voorkom oormatige skuldlas by landsburgers;
  • verseker volle openbaarmaking van inligting aan kredietopnemers;
  • bied beskerming aan kredietopnemers teen onregverdige optrede of wanpraktyke deur kredietgewers en kredietburo’s;
  • verskaf riglyne met die daarstelling van alternatiewe vir dispuutoplossings; en
  • stel prosedures daar om skuldhersiening en skuldherstrukturering te fasiliteer.Watter transaksies val onder die Wet?Bykans alle armlengte-krediettransaksies val onder die Wet, insluitend huurkope. Sommige van die belangriker uitsonderings is die volgende:
  • Insidentele krediet (‘n voorbeeld hiervan is ‘n maandrekening waar die rekening dertig dae na staat betaal word sonder dat rente gehef word).
  • Skuld wat ontstaan as gevolg van ‘n tjek wat vir betaling aangebied en deur die bank gedishonoreer word.Wie val onder die Wet?Alle entiteite wat krediet opneem val onder die Wet, met die uitsluiting van:
  • beslote korporasies;
  • trusts met drie of meer trustees;
  • maatskappye;
  • vennootskappe; en
  • verenigings.’n Voorwaarde is egter dat die voormelde entiteite (in die Wet word verwys na regspersone) ‘n batewaarde of omset van R1 000 000 of meer het. Privaatpersone val dus almal onder die werking van die Wet. Indien die regspersone ‘n batewaarde of omset van minder as R1 000 000 het, maar ‘n kredietooreenkoms aangaan van R250 000 of meer, val die transaksie ook buite die Wet. Indien ‘n persoon borg teken vir ‘n kredietopnemer wat onder die Wet val, word die borg hanteer asof hy die hoofskuldenaar is en val hy ook onder die Wet. Die borg se finansi&eumlle posisie moet dus ook in terme van die Wet ge&eumlvalueer word.Kredietooreenkomste Die ooreenkoms tussen die partye is onderworpe aan streng voorskrifte. Die belangrikste hiervan is die volgende:
  • Die ooreenkoms moet in verstaanbare taal geskryf wees.
  • Misleidende voorwaardes word verbied.
  • Voorwaardes waar gemeenregtelike regte van die kredietopnemer weggeneem of beperk word, is ongeldig.
  • Regte wat weggeneem word van die kredietopnemer wat deur die Wet daargestel word, is ongeldig.
  • Rentekoerse, fooie en kredietversekering moet duidelik aangetoon word.
  • Differensiasie tussen rente op lopende en agterstallige bedrae in dieselfde ooreenkoms word verbied. ‘n Nuwe ooreenkoms moet in elke geval gesluit word. ‘n Voorbeeld hiervan is agterstallige paaiemente by huurkope.Wysiging van kredietooreenkomste Verlaging van kredietlimiete kan deur beide partye gedoen word. Tydelike verhogings kan op aanvraag deur die kredietopnemer gedoen word, op voorwaarde dat die kredietlimiet weer binne ‘n ooreengekome tyd herstel word na waar dit was. Alle ander verhogings van kredietlimiete mag slegs gedoen word nadat ‘n nuwe evaluering van die kredietopnemer se finansi&eumlle posisie gedoen is. Wysigings kan slegs deur die klant self aangevra word.Kwotasie

    Die kredietgewer moet ‘n voorooreenkomsstaat of kwotasie aan die kredietopnemer verskaf waarin rentekoerse, koste, fooie en kredietversekering uiteengesit word. Die kredietgewer is vir vyf dae daaraan verbind waarbinne die kredietopnemer die kwotasie kan aanvaar. Die kredietopnemer kan egter ook die kwotasie onmiddellik aanvaar indien hy/sy dit so verkies.

    Groter deursigtigheid dra dus by tot ‘n meer ingeligte besluit deur die kredietopnemer.

    Regte van kredietopnemers

    Verskeie regte word aan kredietopnemers gegee, waarvan die volgende enkele voorbeelde is:

  • Die reg om aansoek te doen vir krediet, welke aansoek ooreenkomstig die kredietgewer se normale beleid oorweeg moet word.
  • Gebruik van die taal van jou keuse.
  • Die reg om te weet hoekom ‘n aansoek afgekeur is.
  • Die reg om onder sekere omstandighede aansoek te doen vir skuldhersiening en herstrukturering van die skuldlas.
  • Die reg tot ‘n afkoelperiode van vyf dae by huurkope indien die transaksie nie by die kredietgewer se geregistreerde besigheidsplek plaasgevind het nie.
  • Die reg om huurkoopitems vrywillig terug te gee.
  • Die reg tot verkryging van volledige inligting aangaande die krediettransaksie, relevante dokumentasie en state.
  • Die reg om inligting van kredietburo’ s se swartlys te laat verwyder sodra die skuld betaal is.
  • Beskerming teen onre&eumllmatige bemarking.
  • Die reg tot vertroulikheid insake inligting.Oormatige skuldlas ‘n Kredietopnemer het ‘n oormatige skuldlas indien hy nie sy skuld kan betaal in terme van sy kredietooreenkomste nie. Prosedures kan in so ‘n geval deur die kredietopnemer gevolg word vir skuldhersiening en strukturering.Roekelose krediet

    ‘n Kredietverskaffer is skuldig aan roekelose kredietverskaffing indien hy onder die volgende omstandighede krediet sou toestaan:

  • ‘n Behoorlike ondersoek aangaande die kredietopnemer se finansi&eumlle posisie is nie gedoen nie.
  • Die kredietopnemer het nie die algemene risiko’s, koste of verpligtinge van die ooreenkoms verstaan nie.
  • Die aangaan van die ooreenkoms laat die kredietopnemer met ‘n oormatige skuldlas.’n Groter verpligting word op kredietgewers geplaas rakende die insameling en verifi&eumlring van inligting en die evaluasie daarvan. Groter beskerming word sodoende aan skuldopnemers gebied.Afdwing van ooreenkomste Die Wet maak voorsiening vir ander metodes van dispuutoplossing behalwe die normale skuldinvordering. Voorsiening word gemaak vir liggame en partye soos :
  • die Nasionale Verbruikerstribunaal;
  • skuldberaders;
  • ‘n ombudsman;
  • verbruikershowe; en
  • alternatiewe dispuutoplossings-agente.Die gevolg van die nuwe Kredietwet is dat die normale prosedures van skuldinvordering drasties verander. Dit verg derhalwe meer omvangryke administrasie en ook meer van die aansoeker se tyd. Met die tandekrypyne van die eerste aansoekseisoen na die bekragtiging van die Wet grootliks agter die rug, beywer NWK hom om sy relevante prosesse voortdurend te monitor en waar nodig te verfyn. Indien veranderings aan die Wet in die toekoms sou plaasvind, sal NWK se kredietklante beslis daaroor ingelig word.