Frequently Asked Questions
HOW DO I KNOW WHEN TO APPLY FOR DEBT COUNSELLING?
If after deducting your living expenses from your net salary, have less cash left over than instalments on your debt then you may apply for debt counselling.
HOW DO YOU HELP ME?
We will negotiate on your behalf to have your current debt restructured with existing creditors. Money is not loaned but the terms and conditions under which the existing debt can be repaid changes.
HOW IS THIS POSSIBLE?
Debt Counselling was formally introduced by the National Credit Act, No. 34 of 2005 to assist consumers having difficulties in servicing their debts.
WHICH OF MY DEBTS ARE COVERED?
We will include home loans, vehicle finance, credit cards, store cards, overdrafts, personal loans and micro-loans except doctors’ fees, insurance premiums. It is important to disclose fully all your debts. Insufficient information may result in your creditors not accepting you on the program.
WILL CREDIT BUREAUS BE NOTIFIED?
We send your details to all credit reporting agencies advising them of your credit counselling status.
HOW DO YOU DETERMINE WHAT MY MONTHLY PAYMENT WILL BE?
We will look at your monthly income and consider your living expenses. A recommendation is then made on the amount you can reasonably afford to pay each month. One of our consultants takes you through your budget and advises your monthly payment.
WHEN IS MY FIRST PAYMENT DUE?
You can pick the payment date that is best for you but you must choose a payment date within 30 days of enrolment, for your first payment.
WHAT HAPPENS IF I MISS MY MONTHLY REPAYMENTS?
If you miss a monthly payment, credit providers will terminate the plan and institute legal proceedings. To avoid this, it is very important that you disclose your complete situation so that we work out a more affordable debt repayment plan. Should there be any change in circumstance please be prompt in notifying your consultant.
WHAT HAPPENS IF CREDIT PROVIDERS DO NOT ACCEPT THE PROPOSED DEBT PLAN?
Credit providers can either accept or reject the debt plan. Should they reject the repayment plan, our legal team refers the matter to a Magistrate’s Court, for a final ruling.
CAN I APPLY FOR MORE CREDIT WHILE UNDER DEBT REVIEW?
In terms of section 88(1) of the National Credit Act No. 34 of 2005, you must not incur any further charges under a credit facility or enter any further credit agreement whilst under debt review. Doing so, will result in you being rejected from the debt review and legal proceedings from your credit providers will be instituted. As a show of commitment to the program, you will be asked to destroy your credit cards. Remember, this is what got you into trouble in the first place.
HOW LONG DOES IT TAKE TO GET STARTED ON THE PROGRAM?
Your credit providers are notified on the same day of receiving your supporting documentation. The faster you return the required documentation, the earlier we can start on your case.
WHAT INFORMATION IS REQUIRED TO GET STARTED?
You will need all your creditors names, account numbers, total balances and minimum monthly repayments for each account. You will need to collect your most recent statements.
HOW CONFIDENTIAL IS THIS?
All cases are dealt with in the strictest of confidence. We will never reveal your name to any third party.
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 Debt Sage and provide them with a copy of the Form 17.2 (you receive this to show successful application) or request that they contact us on 010 005 5350.