Debt Review Process

Step 1

A Consumer Calls for Service

A consumer that is overwhelmed by debt will contact us for assistance.

Step 2

Quick Assessment Perfomed

A basic assessment will be performed to get a basic idea of the current debt that a consumer is having and an estimate of how much the consumer will be paying. A credit report will be done upon consumer’s consent.

Step 3

Quick Assessment Decision

If the consumers debts are below R20000, the debt counsellor will advise the consumer to approach the creditors to arrange a payment plan. Debt above R20000, the Debt Counselor will proceed with the application. 

Step 4

Consumer Apply for Debt Review by Completing and Signing Form 16

The Debt Counsellor will explain the process and assist the consumer to complete an application form (Form 16). Married consumer can only do a joint application.

Step 5

Debt Counsellor Request Balances from Credit Providers

The Debt Counsellor will request all balances from credit providers to perform an over-indebtedness assessment and affordability.

Step 6

Perfom Over-Indebtedness and Affordability Assessments

The Debt Counsellor will perform an over-indebtedness assessment by using the current debt commitment for creditors and the consumers living expenses to determine how much the consumer can afford to pay creditors.

Step 7

Over-Indebtedness and Affordability Assessments Decision

The Debt Counsellor will determine if the consumer is over-indebted as per the assessment. If the consumer is not over-indebted, the Debt Counsellor will reject the application and accept if over-indebted.

Step 8

Consumer Application Accepted and Resulted as Over-Indebted

In an event where the consumer is over-indebted, the Debt Counsellor will inform the National Credit Regulator (NCR) and the consumers creditors.

Step 9

Debt Counselor Send Initial Payment Proposal to Consumer Creditors

The Debt Counsellor will send the initial payment proposal to creditors as per what the consumer can afford.

Step 10

Consumer Creditors Review and Accept or Reject Proposal

The Debt Counsellor and consumer creditors will engage on negotiating the interest rate, payment amounts and schedule until an agreement is reached.

Step 11

Court Application Upon Payment Proposals Accepted

A court application will be done with to obtain a court order on the agreed repayment amounts, interest rate and term.

Step 12

Debt Repayments as Per the Reduced Amount Schedule

Easiest way to manage your projects and tasks.

Step 13

Repayments Monitoring (Aftercare)

The Debt Counsellor will monitor the payment allocation and ensure that the consumer gets statements and updates as required.

Step 14

Clearance Certificate Issued

Upon completion of all payment the Debt Counsellor will issue a clearance certificate and update the NCR. A clearance certificate is still issued if the consumer is still owing home loan (Bond) only.

Step 15

You are Debt Free to Enjoy Financial Freedom

The consumer enjoys their financial freedom and ensure that they apply  for credit responsibly.