Faq

FAQS

What is debt review?

Debt review is a formal legal process designed to help over-indebted consumers who are struggling to meet their monthly debt obligations. A debt counsellor will create a new, affordable monthly budget and payment plan, giving you a clear picture of your household spending versus your income, and a detailed plan on how to pay off your debt commitments. The National Credit Act (NCA) 34 of 2005 was i...

WHAT IS A DEBT REVIEW CLEARANCE CERTIFICATE?

A debt review clearance certificate is a document that confirms you’ve paid off all the debts included in your debt review court order or repayment agreement. Getting this certificate marks the successful completion of your debt review process. Even if you have a long-term agreement like a mortgage, you can still get a clearance certificate once all your short-term debts are paid off. Accord...

What are the advantages and disadvantages of debt counselling?

The National Credit Act (NCA) of 2005 introduced debt counselling to help consumers struggling with debt. At Simunye Debt Advisory, we’ve helped many people become debt-free through debt counselling. When you’re deep in debt, the benefits of debt review often outweigh the drawbacks. Let’s explore the advantages of debt counselling. What Are the Advantages of Debt Counselling? I&#...

WHY DO OUTSTANDING BALANCES ON THE STATEMENT FROM MY PDA AND CREDITORS DIFFER?

We’ve received many questions from our clients under debt review about this topic. You might have wondered about it too and need some answers. The balances on the statements issued by your debt counsellor, which come from the Payments Distribution Agency (PDA), are just estimates. First, the account information your debt counsellor (DC) enters into the PDA system must be accurate. If not, th...

WHAT IS THE NATIONAL CREDIT ACT?

Debt review is a formal legal process designed to help over-indebted consumers who are struggling to meet their monthly debt obligations. A debt counsellor will create a new, affordable monthly budget and payment plan, giving you a clear picture of your household spending versus your income, and a detailed plan on how to pay off your debt commitments. The National Credit Act (NCA) 34 of 2005 was i...

WHAT IS THE NATIONAL CREDIT REGULATOR?

The National Credit Regulator (NCR) is an independent entity established by the National Credit Act (NCA) 34 of 2005 to regulate the credit industry. What Does the NCR Do? The NCR is responsible for: Registering and deregistering credit providers, credit bureaus, debt counsellors, and payment distribution agencies. Ensuring compliance with the National Credit Act (NCA) by these entities. Receivin...

WHEN TO APPLY FOR DEBT REVIEW?

You can apply for debt review or debt counselling if you find yourself in any of these situations: Your accounts are 2-3 months or more in arrears. You’re struggling to pay your monthly instalments and feel unsure about what to do. You’ve received final demand letters from credit providers (Section 129) or lawyers. You’re getting constant calls from credit providers and lawyers ...

WILL THERE BE PERMANENT RECORD OF HAVING APPLIED FOR DEBT REVIEW?

When consumers apply for debt review, their profiles are flagged by credit bureaus. After settling their debts, a clearance certificate is issued, and the debt review flag is removed within a month. There is no permanent record of debt counselling, allowing consumers to obtain new credit and build a good credit score. It is not economically sensible for credit providers to penalize consumers who h...

WILL THERE BE EARLY SETTLEMENT PENALTIES UNDER DEBT REVIEW?

If a consumer under debt review comes into money and wants to pay off their debt, there are no penalties for early settlement. In fact, they are eligible for discounts, similar to other consumers. It is more beneficial for the consumer to directly contact credit providers for settlement balances, as they tend to receive larger discounts compared to when a debt counsellor makes the call. After sett...

WHAT IS A CREDIT BUREAU?

According to Section 70 of the National Credit Act (NCA), a credit bureau is an organization that collects, compiles, and reports consumer credit information from credit providers for credit scoring or assessment purposes. What Does a Credit Bureau Do? When you apply for credit, the credit provider will request your credit information from a credit bureau. The bureau provides a credit report to h...

WHICH OF MY DEBTS ARE COVERED UNDER DEBT REVIEW?

When you apply for debt review, all debts with signed credit agreements between you and your credit providers will be included. The following debts will be covered under debt review: Home loans Vehicle finance Credit cards Retail/store cards Overdrafts Personal loans Micro-loans However, we will exclude rent-to-buy agreements, loans from loan sharks, doctors’ fees, and insurance premiums from ...

WILL CREDIT BUREAUS BE NOTIFIED?

We send your details to all credit reporting agencies advising them of your credit counselling status, and will advise them once the counselling is complete. ...

HOW DO YOU DETERMINE WHAT MY MONTHLY PAYMENT WILL BE?

We’ll take a close look at your monthly income and living expenses to understand your financial situation. Based on this, we’ll recommend an amount that you can comfortably afford to pay each month. One of our friendly consultants will walk you through your budget and help you figure out your monthly payment. ...

WHEN IS MY FIRST PAYMENT DUE?

Generally, your first payment under the debt review process is due within the first month following the finalization of your repayment plan. This means you should expect to make your first payment within 30 days of enrolling in debt review. Our highly trained team of registered debt counsellors will be able to assist you with further information during the debt asssitance process. ...

WHAT HAPPENS IF I MISS MY MONTHLY REPAYMENTS?

If you miss a monthly payment, credit providers may terminate your debt repayment plan and initiate legal proceedings. To prevent this, it’s crucial to disclose your complete financial situation to us. This way, we can create a more affordable and manageable debt repayment plan tailored to your needs. If there are any changes in your circumstances, please notify your consultant immediately....

WHAT HAPPENS IF CREDIT PROVIDERS DO NOT ACCEPT THE PROPOSED DEBT PLAN?

Credit providers can either accept or reject the debt plan we propose. If they reject it, don’t worry! Our legal team will step in and refer the matter to a Magistrate’s Court for a final ruling. We’re here to support you every step of the way. ...

CAN I APPLY FOR MORE CREDIT WHILE UNDER DEBT REVIEW?

According to section 88(1) of the National Credit Act (NCA) 34 of 2005, you shouldn’t incur any new charges under a credit facility while you’re under debt review. When you apply for debt review, your profile is flagged to show that you’re under debt review. This means that if you apply for new credit, the credit provider will see this flag on your credit report. Under the NCA, y...

WHAT INFORMATION IS REQUIRED TO GET STARTED?

You will need the following: your creditors names account numbers total balances and minimum monthly repayments for each account. You will also need to collect your most recent statements. ...

HOW LONG WILL I STAY ON DEBT REVIEW?

This is one of the top questions I get asked daily during consultations: “How long will I stay on debt review?” It’s the most frequently asked question, and the best answer I can give is that it depends on two factors. The two factors are the total outstanding debt and the monthly contribution amount you’ll be paying towards your debt. To put it into perspective, if you ow...

WILL THE COLLECTION ACTIVITY FROM MY CREDITORS CONTINUE? I.E. PHONE CALLS AND COLLECTION LETTERS

Most creditors will stop once they receive the first payment. Should they continue you must advise them that you are under debt review with Simunye Debt Advisory and provide them with a copy of Form 17.2 or request that they contact us on 087 33 00 403   ...

WILL THERE BE PERMANENT RECORD OF HAVING APPLIED FOR DEBT REVIEW?

When consumers apply for debt review, their profiles are flagged by credit bureaus. After settling their debts, a clearance certificate is issued, and the debt review flag is removed within a month. There is no permanent record of debt counselling, allowing consumers to obtain new credit and build a good credit score. It is not economically sensible for credit providers to penalize consumers who h...

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