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.
2. The consumer contacts a registered Debt Counsellor 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.
3. All requested documentation as on the application form is supplied by the consumer within 5
days of signing the form 16.
4. With the information and supporting documents supplied by the consumer the debt counsellor
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
5. A formal analysis is done by the Debt counsellor 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 counselling 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.
6. If the consumer is indeed over indebted according to the above method all creditors would be
informed of this for their record.
7. The restructuring process can now begin. The Debt counsellor 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.
8. 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 counsellor acted in terms of the Act and subsequently
restructured the debt accordingly.
9. A Very important consideration when applying for debt counselling will be who handles your
money! Debt counsellors are not allowed to handle any money from consumers except for the
application fee along with the retainer for early cancellation.
10. 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.
11. The Fee structure:
Debt counsellors are entitled to a maximum of R 6000 plus VAT for single applications and R
6000 plus VAT for a joint application.
The Act allows for the following payment of Debt counsellor fees as well as Legal fees.
The first payment made by the PDA will pay the debt counsellors 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.
12. 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 counsellor
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 counsellor is entitled to a 5% after care fee not exceeding R300.
13. As soon as all debt has been cleared the debt counsellor will release the consumer from debt
review and issue him/her with a clearance certificate. All records will also be removed from
the credit bureaus
14. Should a consumer’s situation change for the better and they are in a position to repay all
monthly obligations as they were before the restructuring they will be allowed to be release
from debt counselling. Although nothing is binding, any consumer can leave the process at
any time for any reason

Nadia de Weerdt, a Debt Counsellor at Sandton Debt Counselling, had an interview on SABC News about Christmas overspending and how the Debt Review process could help consumers to responsibly handle their debt situation. For more info, go to https://www.sandtondc.co.za

The numbers are in for the month of January!

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Albert Sbragia considers American urban government as an investor whether for building infrastructure or supporting economic development.  Over time, such investment has become disconnected from the normal political and administrative processes of local policymaking through the use of special public spending authorities like water and sewer commissions and port, turnpike, and public power authorities.

Sbragia explores how this entrepreneurial activity developed and how federal and state policies facilitated or limited it.  She also analyzes the implications of cities creating innovative, special-purpose quasi-governments to circumvent and dilute state control over city finances, diluting their own authority in the process.

Product Features

• Used Book in Good Condition

What is debt consolidation? Basically, it involves rolling all your current loans into a single loan. Instead of having to pay multiple institutions multiple monthly repayments, you can instead just pay a single monthly repayment to a single company. “Why would you do that?”, one might ask. Well of course, there are some benefits, and there are some risks.

Let’s start with the benefits.

1. Less paperwork. Obviously, dealing with a single lender is a lot easier than having to deal with multiple.
2. Easier to budget. If you only have to budget for a single repayment during the month, then this makes things a lot easier. Juggling multiple repayments due at different times of the month can be very confusing.
3. Save on fees. If you’re only going through a single lender, this will probably mean that you will end up paying less in fees and charges overall.
4. Cash savings. Ultimately, the main reason you would want to consolidate your debt is to save money. By choosing a loan with a lower overall interest rate compared to your current loans, you’ll end up paying less per month and less in the long run.

But beware, there are some risks as well.

1. Longer loan term. Although the new loan may have an attractive interest rate with lower monthly repayments, a loan with a very long term will cost a lot more than you think. You’ll end up paying more in interest and fees over the long term.
2. Get deeper into debt. Debt consolidation may allow you to borrow more money. For example, if you transfer your current credit card debt onto your mortgage, you might be tempted to continue using your credit card and get yourself further into debt. This would defeat the purpose of consolidation.
3. Lose your home. By transferring unsecured debt (such as the debt on your credit card) into a secured debt (for example, using your home as security), if you’re unable to make repayments in the future, you might end up losing your home.
4. Equity stripping. Some dodgy lenders might convince customers who are desperate to save their home to sign up to a dodgy loan agreement. These usually have high fees which are paid out of the equity of your home. For example, before refinancing, one couple may have owned 16.2% of the equity in their home. After refinancing, they only owned 11.9%. That’s a loss of 26.5%.

And here’s the take-home message for today.

1. Make sure to read the fine print. Don’t let brokers convince you not to read the paperwork.
2. Understand all the fees and charges before you sign up.
3. Never sign a blank document.
4. Don’t believe unrealistic promises. Brokers who claim that they can get you of debt are con men. If they claim they can help you no matter how desperate your financial situation, then they are probably trying to swindle you.

But my number one recommendation would be:

5. Don’t get into too much debt. Too much debt will cripple you, so the best thing to do is to live within your means and stop trying to keep up with the Joneses.

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RELATED LINKS
ASIC’s MoneySmart – Debt consolidation and refinancing
https://www.moneysmart.gov.au/managing-your-money/managing-debts/consolidating-and-refinancing-debts

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In this episode we discuss when its appropriate to consolidate debt into a new mortgage, and pay off higher interest credit cards

For debtors everywhere who want to understand how the system really works, this handbook provides practical tools for fighting debt in its most exploitative forms. Over the last 30 years as wages have stagnated across the country, average household debt has more than doubled. Increasingly, people are forced to take on debt to meet their needs; from housing to education and medical care. The results—wrecked lives, devastated communities, and an increasing reliance on credit to maintain basic living standards—reveal an economic system that enriches the few at the expense of the many. Detailed strategies, resources, and insider tips for dealing with some of the most common kinds of debt are covered in this manual, including credit card debt, medical debt, student debt, and housing debt. It also contains tactics for navigating the pitfalls of personal bankruptcy, as well as information on how to be protected from credit reporting agencies, debt collectors, payday lenders, check-cashing outlets, rent-to-own stores, and more. Additional chapters cover tax debt, sovereign debt, the relationship between debt and climate, and an expanded vision for a movement of mass debt resistance.

Does it sound CRAZY that if you tap to clear the ENERGETIC’S of Debt and that will have a REAL impact on your actual debt?

Well this happens in 2 ways! So listen to what is energetically “held” in your debt and then Tap with me to Shift right now!

here is what people find…first, yes, cool weird things happen where unexpected things happen to reduce our debt FASTER!

Secondly after this big shift, people’s actions around their debt CHANGE in a huge way creating a massive impact…it is truly miraculous what can happen after clearing the old, negative energy! Your power to create what you want focuses and amplifies!