FAQ’s

WHAT IS DEBT COUNSELLING?

Debt Review also known as Debt Counselling came into effect in June 2007 with the creation of the National Credit Act (NCA) and National Credit Regulator (NCR).  One of the purposes of the National Credit Act is to give a consumer who is overly indebted a “second chance” by restructuring his / her debt repayments by negotiating a new payment plan (lower instalments and where possible lower interest rates.  Any person that is over indebted and earns an income can apply for Debt Review/Debt Counselling.

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DO I HAVE TO SEE A DEBT COUNSELLOR IN PERSON:

No, you do not have to see a Debt Counsellor in person. The whole application process can be electronic, therefore it does not matter where you are.   Streamline Debt Counselling will be able to assist you, it does not matter where you stay.

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HOW LONG WILL IT TAKE BEFORE I EXPERIENCE DEBT RELIEF?

You will immediately experience the relief that Debt Review offers. Within the first 5 days, we will work out a provisional repayment plan for you which you will be able to afford. In terms of the provisional repayment plan, you will make a single payment to a Payment Distribution Agency, who will distribute the money according to your plan. Once you have applied for Debt Review,  your Credit Providers will not be allowed to implement action against you. During this time, we will prepare and negotiate your final repayment plan.

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HOW WILL DEBT COUNSELLING INFLUENCE MY CREDIT RECORD:

Whilst you are under Debt Review, a flag indicating that you are under Debt Review will be present behind your name at the Credit Bureau. Once you have settled all your debt obligations, our debt counsellor will instruct the Credit Bureau to remove the flag and there will be no indication that you have ever been under Debt Review.   All negative information with regard to the accounts that was under Debt Review will be removed.

If you however do not apply for Debt Review, the situation is much worse. If you skip monthly instalments on any of your Credit Agreements, whether it is a Mortgage Bond or a mere clothing account, this will be listed as non-payments and legal steps may follow which will include very expensive legal fees.

For purposes of obtaining credit in the future when you are back on your feet again, it would therefore be an obvious choice to rather opt for Debt Review than to try and juggle your Credit Providers by paying them less than your original instalment or not paying all of them timeously.

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WILL I LOSE ANY ASSETS DURING THE DEBT REVIEW PROCESS?

Debt Review cannot make you lose your home or your vehicle. It can however save your home and vehicle, but this will obviously depend on your unique circumstances. If there was already a summons issued by a Credit Provider, it is much more difficult to include that account into Debt Review. Therefore, it is wise to act and apply for debt review before legal action is taken.

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WILL DEBT REVIEW AFFECT JOB APPLICATIONS?

Employers want responsible employees, and being under Debt Review will show them that you are responsible and took control over your debt.  A person with a bad credit record will much rather scare off a new employer than someone under a Debt Relief program.  Debt Review is also not an act of insolvency, therefore you are allowed to apply for Debt Review even if you are FAIS registered or working in a financial job.