What is debt review?

Debt review, also known as debt counselling, is a debt relief measure in South Africa that helps over-indebted consumers get out of debt. The National Credit Act (NCA) introduced the process in 2007 to prevent consumers from being blacklisted.

Is debt review better than a consolidation loan?

You will not qualify for a consolidation loan if you are over-indebted. Not with us and not with anyone. If your current debt status is that you are over-indebted, you do not have the option of a consolidation loan. The only realistic & affordable way to prevent you from losing your assets is to go under debt review. Our debt review process can offer you immediate asset protection as per the National Credit Act and set you on a course of recovery from debt problems by consolidating your debt into one affordable monthly repayment, reducing your monthly debt repayments & interest and clearing your credit record after you have fulfilled your restructured debt obligations.

Am I over-indebted?

Are you struggling to repay your debt? Have you fallen behind on your scheduled debt repayments or are you at risk of falling behind in the immediate future? These are signs that in all likelihood you are over-indebted. It is also so that the sooner that you apply for debt review, the better. Once a credit provider commences with legal action, there is a risk that the particular debt cannot be included in your debt restructuring plan. Why stress & lose sleep any longer? Request a callback and we can start completing your free debt assessment today!

Is Freedom Debt Advice registered in accordance with the National Credit Act?

Freedom Debt Advice has been registered with the National Credit Regulator (NCR) since 2020.

Debt Review-How long will it take before I feel relief?

You will immediately experience the relief that our debt review process offers. Within the first 5 days, we will work out a provisional repayment plan for you which is based on what you can afford. In terms of the provisional repayment plan, you will make a single monthly payment to a Payment Distribution Agency (PDA) who will then distribute the funds based on your repayment plan. During the first 60 working days of the debt review process, your credit providers will not be allowed to implement any legal action against you. During this 60 day period, we will prepare your final repayment plan.

Can I apply for debt review if I am unemployed?

Going under debt review with National Debt Advisors while you are employed is a great way to protect yourself when the going gets tough. You cannot undergo debt review while unemployed. Employment is one of the qualifying requirements for this highly effective debt relief process. Will I lose my house or vehicle when I am placed under Debt Review?
No, Debt Review can prevent you from losing your home and car. This is because when you enter under debt review, your assets are protected under the NCA (national credit act).

Will my employer know I am under debt review?

No, we will never contact your employer to obtain any information or to confirm anything. Your debt review application is treated as fully confidential through the entire application and debt review process.

How does Freedom Debt Advice manage to lower my debt repayments? Why can’t I do it myself?

In terms of the National Credit Act, debt counsellors are allowed to lower your monthly instalments by extending your repayment periods and by lowering your current interest rates. We have extensive experience in dealing with a lot of credit providers and know the ins and outs of the process through practical experience – no one is therefore better positioned to restructure your debt repayments!

If I am placed under debt review will my creditor providers still contact me?

As soon as you apply for debt review through Freedom Debt Advice, we will within 5 days (usually less than 48 hours) notify all your credit providers that you are going under debt review and from that point onwards they must, by law, communicate with your debt counsellor and not with you directly. It does unfortunately happen from time to time that some credit providers take a chance by making contact with our clients directly, but when this happens, you can merely refer them to us and we will deal with the matter further.

Will I be required to go to court?

Part of our debt review process is to obtain a court order on your behalf in order to enforce your restructured debt arrangement plan on your credit providers. This process is however handled by referring your case to our nominated attorneys. They will contact you in order to obtain all the necessary information in order to compile your application and they will obtain the court order on your behalf. You will therefore not be required to attend court proceedings.

What are the attorneys appointed for?

We appoint attorneys to obtain a court granted order for you. This is to prevent creditors from wrongfully terminating your application. You are then legally protected and your creditor providers will not be able to terminate your debt restructuring agreement or take any legal action against you.

Will credit providers still debit my bank account?

When you apply for debt review, we notify all your creditors to cancel your debit orders. We do however suggest that you open a new bank account at another financial institution in order to prevent unauthorized money grabs by your creditors.

Is debt review a good idea?

The answer is undoubtedly that debt review is a very good thing for over-indebted consumers. Though, in the long run, this is actually a very good thing, as it prevents you from racking up more debt and helps you become debt free.

Benefits of debt review?

  • An affordable monthly budget
  • Restructuring of debts so you only pay one monthly debt repayment
  • Taking over all communication with Credit Providers
  • Negotiating with credit providers for reduced payments
  • Legal protection

When will you need debt review?

  • You’ve maxed out your overdraft/credit cards.
  • You’ve fallen behind on one or more payments.
  • You don’t have enough money to cover monthly living expenses.
  • You’re selling assets to make ends meet.
  • You’re taking out more credit to get by.
  • You’re losing sleep stressing about money.

Can I get a loan while under debt review?

Whenever you apply for a loan, creditors first check your credit record. So, if you apply for a loan while under debt review, they will see this on your profile and reject your loan application. The debt review process protects you by preventing you from adding to your debt and making your situation far worse.

What is the National Credit Regulator (NCR)?

The National Credit Regulator (NCR) was established by The National Credit Act, 2005 (Act No. 34 of 2005). The NCR is responsible for the regulation of the South African credit industry.

The NCA requires the NCR to promote the development of an accessible credit market and to ensure that debt counsellors, the credit bureaux and credit providers are compliant with the Act.

What happens after debt review?

Your debt is completely paid off, you will be issued a clearance certificate. This certificate is known as Form 19. Thereafter, your debt counsellor will notify the credit bureaus that you are debt free!

What are credit reports?

A credit report is a summary of how you have handled credit accounts, including the types of accounts and your payment history, as well as certain other information that’s reported to credit bureaus by your lenders and creditors.

What is reckless lending?

Reckless lending is defined as when a creditor fails to conduct a detailed credit assessment as required by the National Credit Act (NCA) and still offers the consumer credit.

What do I do if I am under debt counselling and a credit provider phones or harasses me?

If you are being harassed by credit providers while you are under debt review, the National Debt Advisors suggest that you inform your creditors that you have applied for debt review in terms of section 86 of the National Credit Act. If your creditors ask for proof, you will be able to show them your NDA receipt.

What happens if you don't pay your debt review?

In terms of the National Credit Act (NCA), if you’re in debt review and you fail to make payment according to the debt review order, your creditors have the right to remove the account from debt review and take legal action against you. This is because your failure to pay places you in contempt of court.

Can I buy a house after debt review?

Yes. Once you’ve been unflagged, you can apply for credit once again and make purchases, such as for a house or car, under credit. You will not be denied because you were once under debt review. You will have to, however, build up your credit score, like anyone else who wants to apply for credit.

Can I pay my creditors directly while under debt review?

If I have additional cash while under debt review, can I pay the creditors directly? All payment distributions must take place through a registered Payment Distribution Agency, such as the NPDA. You must then contact your Debt Counsellor to make arrangements to restructure your repayment plan.