According to the National Credit Regulator (NCR) consumers have slowly but surely began managing their finances and debt repayments better. Although this might be a win for the finance world, unsecured lending (which includes personal loans) have rapidly seen an increase over the past financial year.

Unsecured lending has seen an increase by 66.88 %. Research also shows that there has been sufficient decrease in credit-active consumers who have had difficulties with their credit.

The number of consumers with a ‘good credit record’ has sufficiently increased to 74.2 %.

Contact us today by visiting us today (www.debtcheck.co.za or mail: info@debtcheck.co.za)

Debt counselling is a formal legal process that provides a consumer who has been declare ‘over indebted’ for counselling regarding the maintenance of the said consumer’s expenditure.

Debt Counselling Has Evolved In The Last 10 Years Since It Was Introduced In South Africa.

 When debt counselling was introduced it set off well with a monthly clientele of over 2000 clients monthly. Thus, consumers felt the immediate relief of knowing their debt could be taken care of, other credit industries like the National Credit Regulator (NCR) and other stakeholders within the credit sphere were also trying to comply into the new process of debt counselling which was taking off full speed in South Africa.

Consumers Had Limited Options

 *Voluntary Sequestration: Which could leave consumers blacklisted for more than 5 years. 
 *Administration Order: Which does not alleviate interest inflations and paying off accounts within a particular time frame. This process can also leave consumers blacklisted for up to 9 years.

 *Consolidation Loans: More expensive than current debt obligations due to high interest rates.

This becomes a problem as many of the factors were of the main reasons why (aside from clients refusing to pay) why banks foreclosed on consumer’s assets. Banks then took consumers to court, ordering them to pay the original installment and interest rates which grew annually. 

The Revolution Of Debt Counselling

Major changes evolved in 2016 seeing debt counselling taking a new course and reaching more clientele. Debt counselling has seen a massive 15 000 clientele growth on a monthly basis and the numbers are still growing. Inflation rates, food and fuel increases are part of why consumers are opting for debt counselling, as they are seen to be skipping debt payments as the current inflation rate is leaving consumers with next to nothing.  

How Can We Help?

 *Sending a proposal where a minimum of 80 % of the original installment for a bond with a prime plus 2 % interest is paid.

 *Paying 70 % of the original installments on vehicles with a prime plus 2 % interest.

 *Have all unsecured debt paid within a 60 month period. Depending on a consumer’s circumstances we could write off interest rate monthly fees to 0 %.

 *Reduce credit life insurance products through our sister company (INCheck Insurers).

 So before legal action is taken against you as the consumer, contact our offices to assist you and negotiate to creditors on your behalf.

We are here to make your financial doubt cloud easier for YOU!

Contact us today by visiting us today (www.debtcheck.co.za or mail: info@debtcheck.co.za)

We come across 100’s of clients paying old debt due to lack of education on prescribed debt.  According to the Prescription Act 68 of 1969; debt becomes null and void after a certain period of time.  If you have not changed telephone numbers, moved locations, nor received any communication from your credit provider of the outstanding debt; this debt becomes Prescribed after a 3 year period. This means that the creditor cannot issue you with any legal notices after this period has lapsed nor can they harass you for payment. If the creditor does not claim payments of the debt by means of a letter of demand or summons within this 3 year period; this debt would then become prescribed.  To give you an example; John took a loan with Bank A, May 2006.  His circumstances changed September 2007 and was unable to continue paying his debt obligation.  His creditor does not contact him by October 2010, this credit agreement with Bank A will now become prescribed. 

The most common way in which this “old” debt can become active again is when attorneys contacts consumer and consumer acknowledge the outstanding debt.  Generally legal firms buy these old debtors books from credit providers for a fraction of the outstanding debt amount, then contact the consumer to reactivate the debt either verbally or written acknowledgment of the outstanding debt.  The minute the consumer acknowledges this debt, attorneys can now proceed with legal action for collection of the outstanding debt.  Therefore when faced with old debt resurfacing, it is advisable to let the consultant know that this debt is prescribed and that you have no obligation to pay it. 

This is a basic overview of prescribed debt; should you need further clarification or advice on your prescribed debt.  Please feel free in contacting a Debt Check consultant who will help you determine whether your debt is prescribed and what to do should an attorney contact you.

Visit us today (www.debtcheck.co.za or mail: info@debtcheck.co.za) for a FREE call back from one of our qualified debt consultants and start taking control of your finances today.

At Debt Check we offer Debt Management solutions to remedy financial distress suffered by over indebted consumers that has the aim of rehabilitating you into the credit market.

Our Debt Review programme will protect you from losing valuable assets and keep Credit Providers from taking legal action.  If you have accounts where legal action already commenced; our Debt consultants could still facilitate a reasonable repayment plan with your Attorney.

If you feel you just about getting by each month or you feel the need to borrow money each month just to put food on the table or make it work because of your current monthly debt repayments, contact our debt consultants today.  They will do an assessment to determine the state of your over indebtedness.  If our debt consultants find you to be over indebted, we will notify all your Creditors and negotiate a lengthened repayment period, reduced interest rate and arrange that your installment be reduced.  We have a 96 % acceptance rate for our proposals sent to credit providers; who could also reduce your interest rate to a low 4 %.  Most unsecured / short term debt offered in our credit markets averages at 27 % interest and could go up to as much as 60 %, imagine how fast you could pay off your debt at 4 %!

All monthly debt obligations will then be consolidated into one affordable monthly installment that will cover all obligations under the debt review programme.  Once all Credit Providers agree to the proposed repayment plan, the Debt Counsellor will file an application with the Court to obtain a Consent Order which will then enforce the agreed debt repayment plan.  You will make monthly payments according to the debt repayment plan until balances have been settled or if you are able to continue with payments at the original contracted rates and installments.

As soon as you have settled all obligations in terms of the debt review, the debt counsellor may issue a clearance certificate, indicating that you are now rehabilitated and can enter into the credit market to buy that dream house or car again.  Therefore Debt Review should not been seen as an end of your financial life but you should be looked at, as a beginning to Financial Freedom.  Like a Panado, debt review takes the pain away for now and only consistent commitment with help from your doctor, can the pain can be removed forever.

• Broke before you even get paid?
• Wanting to consolidate all your debt repayments into one?
• Concerned about losing your house / car?
• Need a second chance?

Pros and Cons of going under debt review

Pro’s

1. We will restructure your debt repayments to an affordable amount. Our NCR accredited debt counsellors will make certain that there is sufficient cash for your necessities (food, clothing, transport costs etc) and then the remaining money will be used to pay your debt. Your debt repayment amount will never be more money than you can reasonably afford.

2. Because you are serious about changing your financial situation, credit providers are more likely to negotiate a lesser amount (even over an extended period) with a Debt Check (registered debt counselling practise), because they know that they will get their money on a monthly basis.

3. By going under debt review, your creditors cannot start any legal actions for 60 days.  During this time you are expected to continue paying the creditors’ what you can reasonably afford, while our debt counsellor is arranging the new debt repayment plan.

4. Once under debt review, you only make one monthly payment (to a Payment Distribution Agency) that in turn pays all your creditors. One easy payment will make your finances much more manageable.

5. If you go the debt-counselling route – rather than apply for sequestration – you are far more likely to get credit later on in life. With Debt Check, once your debts have been repaid or we assess that you can afford your existing debt, we will issue you with a clearance certificate and your credit record gets cleared immediately. You are free to get more credit if you want.  With sequestration it will take almost 9 years to get your name cleared.

Cons

1. You will need to pay R 100 as an application fee. According to NCR guidelines, the counsellor will be paid a fee equal to the first instalment of your new debt repayment plan (up to R6 000) and thereafter a monthly management fee of 5% (up to R400) of your monthly repayment.

2. While under debt review you are not allowed to obtain any additional credit or incur any further credit on your existing accounts. Failure to do so will result in the termination of your debt review by your credit providers.

3. You will need to cut down on your living costs and start living on a budget. For example, reducing your food bill by buying in bulk or at the cheaper stores, shopping around for cheaper insurance and trying to reduce your transport costs.

Debt Check will work with you in finding the best solution to manage your finances.  Contact us today by visiting us today (www.debtcheck.co.za or mail: info@debtcheck.co.za) for a FREE call back from one of our qualified debt consultants and start taking control of your finances today.