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

NDMA Acting Case Mediation Manager Santie Schindehutte offers consumers help when debt review fails them

This is a review of the documentary film “Life and Debt” which addresses the impact of the International Monetary Fund, the World Bank, the Inter-American Development Bank and current globalization policies on a developing country such as Jamaica.

MINE WORKERS WHO HAVE BEEN ON STRIKE FOR THE PAST FOUR MONTHS AND NOT EARNING SALARY ARE STRUGGLING FINANCIALY AND CANNOT PAY THEIR DEBT. DEBT RESCUE SOUTH AFRICA SAID IT HAD TO TURN AWAY HUNDREDS OF MINEWORKERS ON THE PLATINUM BELT APPLYING FOR DEBT REVIEW. DEBT RESCUE WHICH ASSIST INDEBTED INDIVIDUALS AND MANAGE CREDIT THEIR CLIENTS, SAY THEY CAN ONLY HELP IF CLIENTS HAVE SOME FORM OF INCOME, BUT BECAUSE THE STRIKE HAS DRAGGED ON FOR NEARLY FIVE MONTHS, MANY OF THEM HAVE NO MONEY LEFT.

http://diversedebtcounsellors.co.za | Every day we get clients who ask us “what is debt review?” In this short video we highlight the most important things you should know about debt review and show you how debt review can help you overcome even the worst debt crisis.

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In the following Video Nicolette discusses the debt review/counselling process

Debt-Savvy is South Africa’s leading debt counsellor. Each month we help hundreds of South Africans to consolidate their debts, reduce interest rates, and more! Learn how with our free education videos: www.debt-savvy.co.za

Visit us online by going to https://www.debtreview-sa.co.za

We found that potential debt review applicants need and want to know the steps of the debt review process. Below we made a short summary for you, to provide you some indication on what to expect.

1. If you feel you are over indebted you would need to contact a debt counsellor to do this application.

2. You will apply for debt review by completing and signing a Form 16. Keep your ID, latest payslip ready as well as the latest statement of each creditor. It is very important that you provide the debt counsellor with ALL your creditors.

3. The debt counsellor will inform all creditors and credit bureaux that you have applied to be under debt review. From this stage your creditors will not be allowed to take legal action against you for the following 60 days. This is only valid if a creditor did not already start with legal steps.

4. The creditors will need to supply your debt counsellor with outstanding balances and initial contracts (where applicable).

5. The final step will be for your debt counsellor to assist you with your budget (income less expenses) and to determine what amount will be available for distribution on a monthly basis to your creditors.

Feel free to contact us, to assist you with debt review.