Debt Budget – Our Solution

“The NATIONAL CREDIT ACT (3 of 2005) makes provision for various interventions to assist consumers who are finding it difficult to meet all of their financial commitments regularly.

DEBT REVIEW is one of these provisions.
You will be required to make an application and be interviewed and assessed by a DEBT

COUNSELLOR. (all Debt Counsellors are required to be registered with the National Credit Regulator). Any consumer who is employed and earns an income may apply for Debt Counselling.

The Debt Counsellor will assess whether the consumer is over-indebted. If this is so, he will negotiate with all of your existing creditors on a payment plan. Once the agreement amongst all of the credit providers are accepted, the new payment plan is made and a Court order is obtained.

Your agreed new monthly instalment is then made to a PAYMENT DISTRIBUTION AGENCY (PDA), each month and they distribute it to the various nominated creditors. You may not pay creditors directly.

All credit arrangements may be included such as your Mortgage Bond, Motor Vehicle Finance, bank loans, store cards.
Your name will be flagged at the various credit bureaux, which will prevent you from incurring any further debt.

As soon as all creditors have been paid in full, your Debt Counsellor will issue a debt clearance certificate and your name will no longer be flagged at the credit bureaux.

This is quite an effective way to get back onto your feet, PUT EXTRA CASH into your monthly budget, and it also takes the stress of continual phone calls, nasty and threatening letters, final demands and summonses out of your life.”