Debt Counselling FAQ
Why debt counselling and not debt consolidation loan?
Debt consolidation loans are given against your assets. So if you don’t own anything, there is nothing to give a loan against. Debt counselling charges no extra interest, and increases the payback time on the amount you owe. But the best part is, with debt counselling you are protected by law.
Can my credit providers change their minds after a new repayment agreement has been sign and I am under debt counselling?
No, they can’t. As long as you stick to your re-payments plan (pay the agreed amount on time and in full) the credit providers has to stick to the agreement made with us your debt counsellor and you. That means they are not able to take further legal action against you, they can’t reposes your assets, you are protected by law.
Will anyone know I am under debt counselling?
Definitely not. We take your privacy very serious here at Alliance Debt Counsellors. Keeping your information completely confidential is one of our top priorities. We will not contact you at work or anywhere else unless instructed to do so by you. So unless you tell anyone else, no one will know.
Is debt counselling a safe process to get out of debt?
Yes, absolutely. At no stage during the debt counselling process do we or anyone else have access to your money. Your money is paid directly to the NCR accredited Public Distribution Agent (PDA), who distributes the funds to all your creditors. Our fees are taken as the first payment, but does not affect your repayment structure at all.
Once I've completed debt counselling, will my name be cleared?
Yes, it will. You will receive a clearance certificate, this is a very big deal. A clearance certificate shows that you have good credit record again.
Credit Report, Credit Scores & Credit Ratings FAQ
What is a credit report?
Your credit report contains your credit history as reported to the Credit Bureau of South Africa by lenders who have extended credit to you. The information in your credit report is also used to generate credit scores. Your credit score is determined by how you pay back the credit you have. If your payments is on time, your credit score will strengthen which will increase your chances of getting more credit from Credit Providers.
We can provide you with a free credit record, no strings attached. With your permission, we can request a Credit Record for you, along with a free Debt Assessment. All you need to do is fill in the contact form on this page, and we will contact you for free.
How much will requesting a credit record cost?
We can provide you with a free credit record, no strings attached. With your permission, we can request a Credit Record for you, along with a free Debt Assessment. All you need to do is fill in the contact form on this page, and we will contact you for free.
Why is my credit report negative?
Falling behind on one or more of your installments can result in a negative credit score at the credit bureau. It is very important to pay your creditors in full and on time.
How can I clear my negative credit score?
The best place to start clearing your negative credit profile is by clearing your debt. Paying your creditors on time and in full. You need to make sure that your income is enough to cover all your living expenses as well as paying all your creditors. For future reference, you will need at least 15% left of your initial income after you have made all your payments, as contingency to cover for emergencies. If you need some help with this, <a href=”http://adc.org.za/agents/debt-counselling/”>Debt Counselling</a> is a great solution for clearing your Negative credit record.
You can use our <a href=”http://adc.org.za/debt-tools/debt-calculator/”>Debt Calculator</a> to see if you have at least 15% left each month.
Debt Counselling Removal FAQ
Can I cancel Debt Counselling?
Yes. If you have settled all your accounts, but you are no longer over-indebted and you can afford the original contractual monthly amounts that you were paying before the debt counselling process.
Can I cancel Debt Counselling without an attorney?
In short, no. It is permissible for a consumer to represent him or herself at court. However, the formalities of making an application are best understood by an attorney, and mistakes in the application can result in the dismissal of the application or postponements that can readily be avoided occurring. As such, a consumer can employ the services of an attorney to attend to the court application to terminate the debt counselling process and to ensure that once the court application is granted, the consumer’s credit information is accordingly updated with the credit bureaux and National Credit Regulator to reflect that the consumer is no longer under debt counselling.
Do I have to attend court to terminate Debt Counselling?
The consumer does not have to be present at court. The consumer must facilitate the process where required, typically by providing required information and documentation.
Do I need to apply to court to cancel Debt Counselling if no court order was issued?
As per point 2 above, and as further detailed in the National Credit Regulator’s Removal from Debt Counselling Guidelines, the termination of the Debt Counselling process is only possible if the consumer applies to court to rescind the Debt Counselling order if one was obtained, or for a determination that the consumer is no longer over-indebted. These are the only two circumstances in which a Form 17.W can be issued that results in the removal of the Debt Counselling signifier from the consumer’s credit report. If the consumer has paid up all the accounts that are under Debt Counselling then neither of the two circumstances shall be applicable as the consumer would be entitled to a clearance certificate that would be issued by the debt counsellor once all debt included in the Debt Counselling process is paid up, or all such debt is paid up and there is only an outstanding home loan account that is up to date and the consumer is able to revert to the original monthly bond repayment amount.
Can Debt Counselling termination be done in less than 60 days?
Realistically, the Debt Counselling cancellation process can never take less than 60 days. Firstly, the court application must be prepared and a court date must be obtained. The court date is never likely to be less than 2 weeks away, as the court application must be served on the debt counselor and the creditors. Furthermore, the allocation of a court date depends on the caseload that the court has before it already. Thereafter, once the court order is obtained, the Debt Counselling signifier must be removed from the consumer’s credit reports and from the NCR’s database. This takes a minimum of 20 business days as per the National Credit Act 34 of 2005.
Can I cancel Debt Counselling and continue to pay the reduced instalment?
The application to terminate Debt Counselling depends on the consumer’s ability to show he or she is no longer over-indebted. If the consumer cannot afford to increase the Debt Counselling repayment amounts, preferably to the amounts that they were paying before commencing with the Debt Counselling process, it is highly unlikely that the application shall succeed unless the creditors have indicated acceptance of such reduced payments.
