Frequently asked Questions
What is Debt Counselling?
Instituted in June 2007 with the implementation of the National Credit Act, Debt Counselling (also known as Debt Review) is a highly effective debt repayment solution focused on helping over-indebted individuals to meet their commitments in a way that suits both their Credit Providers and their pocket. Apart from the fact that it reduces stress it offers protection against legal action from Credit Providers and the everlasting effects of being placed under Administration. It also provides individuals with a way to repay their debts while ensuring that they still have the ability to meet daily living expenses. In short, if you are struggling to meet your monthly repayments and face possible legal action, Debt Counselling could offer you the solution you need.
Octogen are pioneers and market leaders in Debt Review.
Which of my debt qualifies for Debt Review?
Debt where legal action has not commenced can be included when you apply for Debt Counselling. All debt has to be included when you apply for Debt Review. Certain contracts such as Gym cannot be included in Debt Review and normally this repayment is included in your budget.
When we do the assessment we will provide advice on all your obligations.
What is a Debt Counsellor?
A Debt Counsellor may act as a bridge between you and your Credit Providers in order to alleviate financial stress. A Debt Counsellor must assess if you are over-indebted or if any of your credit agreements are reckless. He/she will use the information provided by you, but will also verify the information with the Credit Providers and a Credit Bureau. A Debt Counsellor is qualified, registered and regulated by the National Credit Regulator.
All Debt Counsellors employed by Octogen are trained and registered.
Important facts about Debt Review
- The aim of Debt Counselling is to repay your debt in a structured way.
- Debt Counselling does not provide you with a payment holiday.
- You must make payments every month from the first month you apply.
- During the debt repayment period your name will be listed with the Credit Bureau as being under Debt Counselling. During this period you will be unable to take on new debt.
- Once this process is completed you should be able to access responsible, new debt if required.
- It is best to ensure that you do not miss any repayments as this will mean that the process is cancelled by your Credit Providers and this allows them to commence with legal action.
- We understand the Debt Review process well and our specialists will guide you through every step of the process.
How long will it take?
The National Credit Act has laid down the following requirements:
- Once your have applied we need to advise your Credit Providers, review your budget, structure a repayment plan and refer the matter to Court within 60 business days.
- Obtaining of a Court Order on your behalf provides the rightful protection as allowed in the NCA.
- You can make a single payment every month and the Act allows you to increase your payment if and when you can afford it.
- As soon as you have repaid your short term debt and you are left with your bond you can apply for a Clearance Certificate.
- The length of time it takes to repay your debts will vary depending on your unique situation but the majority of Octogen Clients repay their debt in a shorter period than planned.
What are the benefits of Debt Counselling?
The benefits of Debt Counselling are:
- No additional charges to consider – Debt Counselling fees are included in your monthly repayment.
- One affordable payment per month, which is lower than existing installments. If you qualify for the industry concessions your fees and interest rate can be reduced and this will reduce your repayment.
- This payment makes provision for essential living expenses so you can breathe a little easier.
- As long as you maintain your repayment you enjoy the protection of the Act.
- The cost of this process is much less than that of Foreclosure, Administration, Garnishee Orders and Sequestration.
- Although a repayment period is defined you can, without penalties, increase your payment and this will reduce the Debt Review period. This means that you can control and reduce the Debt Review period.
- No need for further financial stress and at the same time gain relevant debt management skills to ensure sustained financial rehabilitation.
How do I know when I need Debt Counselling?
If you are not able to make your monthly payments, your bills are piling up and you don’t have enough money left to live on, then you will benefit from seeing a Debt Counsellor.
If you are not sure contact us for a free assessment.
Do I qualify for Debt Counselling?
You qualify for Debt Counselling if:
- You are struggling to pay your current debt on time.
- You do not have sufficient funds to pay debt after your essential living expenses.
- You are most likely unable to pay future debt should you acquire further credit.
- The restructuring of your debt enables you to repay your debt within a reasonable period of time.
How did I get so far in debt?
Most people, at some stage of their life, have acquired debt. It’s how you deal with and manage your debt that makes the difference.
Maybe you lost your job, experienced a medical issue that resulted in a massive medical bill or you overspent on your credit cards, whichever the reason, it’s best to tackle debt early on.