RNB  Debt Management                            021 946 4100 

 
 

Debt Review FAQ

What is debt review?

Debt Review is where a Debt Counsellor restructures your instalments to allow you to pay your debt as well as meet your basic living expenses. Payments are paid monthly to a National Payment Distributing agency [PDA] who will then distribute your money according to the restructure plan set out by your debt counsellor. Debt Review is not the same as a sequestration, debt consolidation or being under administration. Through Debt Review you stay in control of your finances. The Debt Counsellor will negotiate new terms of repayment with all of your creditors in an attempt to repay all of your debt in the shortest time possible.

 

What is a Debt Counsellor?

A Debt Counsellor is somebody who attended a Government Accredited Course in Debt Counselling and who passed the examination. He/she also needs to be officially registered with the NCR and must be able to provide his/her NCR registration number. He/she must have the necessary infrastructure to provide Debt Counselling services.

 

What is the process?

  1. After your application is received we will let all your creditors as well as the credit bureau that you have applied for debt review.
  2. Within 5 Days the creditors will issue us with a COB (Certificate of Balances), including outstanding balance, interest rate, monthly installment, etc. this will be used to determine if you are over-indebted or not.
  3. An assessment is then done to see if you are over-indebted. If you are found not to be over indebted the debt review application will be rejected. If you are found to be over indebted we will notify your credit providers accordingly.
  4. We will draw up a restructured payment plan (proposal) and send it though to your creditors of which they can either accept or reject.
  5. If the proposal is accepted by all creditors they will sign a consent form and it will be made an order of the court. If the proposal is rejected by one or more credit providers, the court will then have to decide whether or not to make it an order of the court.
  6. When all accounts have been paid, the debt counsellor will issue a clearance certificate and your name will be cleared from all credit bureaus.


Who can apply for Debt Counselling?

Anybody with a monthly income who cannot fully settle his/her monthly debt repayments after basic living expenses have been paid. If you are unemployed, you can unfortunately not apply for Debt Counselling, as the purpose of Debt Counselling is to restructure your debt in such a way that your creditors would be paid in full over time.


Can my creditors take legal action against me?

Once you have applied for Debt Counselling, none of your creditors may take legal action against you for a period of sixty business days. During this period, the Debt Counsellor will renegotiate new terms with your creditors.