Does debt counseling cover my court summons?

No, but attorneys and creditors will be favorable to the debt review program and therefore might agree to have this included.

How does the National Credit Act protect me as a consumer?

Because it regulates the way credit will be granted, it protects you from reckless credit approvals and over-indebtedness. A creditor is supposed to check your credit status before giving you any credit.

What type of debt cannot be placed under review?

Contracts such as leases, insurance policies, immovable property, stokvel and dishonored cheques are not allowed. If a creditor has proceeded with enforcement on ground of default, e.g. emolument attachment order, judgements, etc.

While under debt review will creditors stop adding interest to my debt?

No, unless they agree otherwise interest and costs can still be added.

Can I borrow money from my debt counselor?

No, it is prohibited in terms of the Credit Act. He can lose his license.

Why must I open a new savings account when I apply for debt counseling?

If you owe money to the bank where your account is kept they might do 'money grabs' on salaries for payments in arrears.

What about all my debit orders on my bank account?

You need to cancel all these debit orders, with both the bank and the respective companies. Arrange new debit orders on your new savings account, but not for any debt. While under debt review all debt will be paid by a Distribution Agency, who will deduct the total monthly debt payment from your account via debit order.

When can I buy on credit again?

As soon as all your debts has been cleared and your name removed from the NCA's credit roll. However, keep in mind what caused you to become over-indebted in the first place.

Are you unable to keep up with your debt? Is your credit providers hassling you? Afraid you might lose everything? Get help from a debt counselor to consolidate all your outstanding debt.

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