Struggling with Debt? Debt Counselling can help!

Debt Counselling, also known as the Debt Review process, is available to consumers as a way to solve Debt Problems. It is a Legal Process that was introduced by the National Credit Act no: 34 of 2005 and enforced in 2007. This is needed in our current chaotic economic climate.

Debt Counselling is a means for an over-indebted consumer to negotiate more affordable repayment terms on existing credit agreements. This process is a legal one with us as the Debt Counsellor performing the negotiations with the Consumer on one side and the Credit Providers on the other. Once an acceptable repayment plan has been negotiated we approach the Magistrates’ Court on behalf of the consumer to obtain a Court Order. This Order ensures that all parties are properly protected during the period while the consumer is over-indebted. This is a well legislated and entrenched process in our Credit Market and provides a vital service.

We offer an excellent level of service and this can be justified by our reasonable repayment plans as well as the levels of acceptance that we are experiencing with both the Consumers and the Credit Providers.

There are over 11 MILLION consumers with accounts in arrears in South Africa.

Benefits of the Debt Review Process

  • One seriously reduced installment.
    Combines all your debt repayments into one installment – just like a consolidation loan, but with a boat load of extra benefits.
  • No more juggling between payments.
    One super affordable installment and when we say super affordable think between 30% and up (though higher reductions are case dependent as nobody shares the same debt concerns or balances) less than what you would have paid with a normal consolidation loan.
  • No fixed property? No worries!
    Unlike consolidation loans, where you would need fixed property to qualify, Oyisa’s Debt Review service is for everyone. Renters, owners, you’re all welcome!
  • Immediate cash flow relief from the start.
    Your new installment (and budget that takes care of your family) will kick in from the get-go. So no worries, no stress!
  • Protection against angry credit providers.
    Oyisa’s Phalanx© is the only way to protect your assets like your home or vehicle when finances get tight.
  • These benefits and perks will make your life better while getting you out of debt!
    The biggest benefit will be an emotional one. Emotionally you will become relieved from all of the pressure of being overly in debt.  The minute you are taken under debt review you will be in a ‘safer place’ financially.  You will be able to see the future more clearly because your debt counsellor will support you to get back on your feet again.  There are many other benefits to debt review which will allow you to experience a better quality of life, for example: 

  • Tailored repayment structure unique to your individual needs;
  • Accumulate your debt into one easy and affordable installment, you pay one affordable monthly repayment amount towards all your debt 30% and up (though  higher reductions are case dependent as nobody shares the same debt concerns or balances);
  • Negotiating better interest rates with your creditors;
  • Extending your debt repayment periods,
  • enables clients to make monthly debt repayments;
  • Cash flow relief from your next pay cheque;
  • Provide for your family’s vital living expenses;
  • Pay off your debts in a reasonable time period;
  • Protection against your credit providers relieves clients from creditors and debt collectors harassing you for money, they are to communicate your DC not you!
  • The National Credit Act protects you, you are legally protected in terms of the National Credit Regulator (NCR);
  • Your assets listed under the Debt Review process are also legally protected;
  • No more financial stress!
  • Free debt assessment;
  • A Debt Counsellor will formally review the clients finances, develop a suitable monthly budget and negotiate with credit providers on their behalf;
  • Personal Relationship Manager guiding you through the process;
  • Maps out the path for reducing bad debt and becoming debt free;
  • Oyisa’s debt counsellors will educate clients about their financial rights and how to work better with their finances;
  • Nationwide Assistance;
  • Prevents clients from declaring bankruptcy;
  • Legally clear your “black listing” by getting a Clearance Certificate upon completion of the Debt Review process;
  • You have the opportunity to repair your credit profile;
  • The cost of this process is much less than that of foreclosure,  administration, judgment and sequestration;
  • Decreases the chances summonses and judgments against clients;
  • Optional cover through inexpensive Credit Linked Insurance (discuss this option with you DC).

 

If you feel that you need the above, Oyisa United Debt Specialists can assist you with Debt Counselling where ever you are in South Africa.

Join thousands of consumers who have chosen to use the Debt Counselling process to break free of the Debt Trap. Call us on 079 980 0822 or contact us through one of the many options on our contact page and we will guide you through each step of the process. Take the opportunity now! There is no obligation for you to continue if you are not convinced that this process will assist you.

We offer Debt Counselling in terms of Section 86 of the National Credit Act. This Act came into effect on 01 June 2007 and its purpose is to: promote a fair and non-discriminatory market place for access to Consumer credit; regulate Consumer credit and improve standards of Consumer information; prohibit certain unfair credit and credit marketing practices; promote responsible credit granting and use; prohibit reckless credit granting; provide for debt re-organization in case of over-indebtedness; to regulate credit information; and establish recourse for unfair credit practices. Debt counselling is a debt relief measure that came into operation with the implementation of the Act in 2007. The debt review process is aimed at offering relief to over-indebted consumers who are struggling to meet their monthly debt obligations in a timely manner.

The statistics of debt in South Africa paint a shocking picture and clearly show the importance of debt counselling in SA and education with regards to consumer rights and credit. Once consumers better understand the debt statistics in South Africa, and how debt counselling in SA can help them to overcome their financial worries, there is hope for an alleviation of the credit situation in South Africa.

According to statistics, over 9 million South Africans are over-indebted, meaning that 11 million households are currently struggling to pay debts on a monthly basis and are in need of Credit Counselling. These statistics have not stopped South Africans from taking on more credit, as the recent Consumer Credit Market report shows a 22.91% increase in new credit approvals and the result is that more than 70% of an average household income is spent on repaying debts, thereby drastically lowering living standards as disposable incomes becomes less and prices climb.

Debt counselling in SA is an incredibly effective and safe way to minimize a debt crisis. Over 7 000 applications for debt review are processed monthly, and since its inception, debt counselling in SA has resulted in nearly 600 000 applications for debt counselling since March 2008. Although it seems a high number, in comparison to the number of individuals that are over-indebted, debt counselling is still not valued as highly as it should be.

Although the number of applications are increasing, only about 303 420 applicants are currently making their payment through a payment distribution agency. These statistics point to an alarmingly high amount of people in need of Debt Counselling in SA who are either not aware of its benefits or wary of the process. It is important to know that debt counselling in SA could save assets, free up disposable income and help to alleviate the credit situation in South Africa.

Since the inception of the National Credit Regulator (NCR) there have been 588 412 applications for Debt Counselling.

Since the inception of the National Credit Regulator (NCR) 4 817 consumers have settled all debt that they had with 2 340 of these consumers settling their debt in the 2013/2014 year.

Since the inception R15.9 billion has been distributed to creditors by consumers under Debt Counselling. 

(As extracted from the 2014/2015 Annual Report of the National Credit Regulator)

Debt Counselling (also known as Debt Review or Debt management) is a very powerful & formal voluntary legal and closely managed debt solution process, created by the Government and introduced in the National Credit Act no: 34 of 2005, enforced in 2007. It is a debt solution targeted at South African consumers who are over indebted and struggling to manage their finances.

This process also provides immediate protection against legal action and blacklisting from your credit provider.

It’s a legal process that’s goal is to rework your various debt payments into a new, affordable, consolidated repayment plan.

Your new repayment plan is formulated in such a way that it empowers you to pay your debt and provide for your family’s essential living costs. So it truly gives you immediate breathing space.

Oyisa’s debt counsellors guide clients with debt problems through debt review, enabling them to make monthly debt repayments and gain financial stability once again.

Oyisa’s debt counselling process helps clients who are struggling to make debt payments, by entering them into a structured debt repayment plan with their credit providers, in order to ensure they take firm control of their financial situation and settle their short and long-term debt within a reasonable period of time.

This will be done through the process of renegotiating interest rates with credit providers in order to reduce them, as well as by extending the debt repayment terms.

Your new repayment plan is agreed upon by your creditors (we negotiate with them on your behalf), regulated by the National Credit Act and authorized/enforced through a court order.

The consumer makes only one monthly debt repayment, which will be distributed to all consumer’s credit providers. This reduces the stress of having to keep up to date and on top of multiple debt repayments.

Most importantly, when under debt review, consumers are legally protected by the National Credit Act (NCA) and creditors are no longer allowed to hassle them.

This means that the debt review process legally protects you, and your assets, against creditors who want to take legal action against you.

Oyisa has mandates with credit providers to extend the terms and reduce interest rates within reason. Oyisa aim’s to get clients debt free in 60 months, though repayment terms can be extended due to assets such as bonds and vehicles being included. With 90% of Oyisa’s debt review proposals to credit providers being accepted, debt counselling can be considered as a highly effective method of becoming debt free.

Once your debt review process is completed you’ll receive a clearance certificate. Your clearance certificate is sent to your creditors and the credit bureaus, and they are then required by the law to clear your credit record. So you truly can leave your debt worries in the past and start your new beginning.

In terms of the National Credit Act, as Registered Debt Counsellors and a qualified Senior Paralegal, with an attorney on board as part of our team, we are able to assist you to become financially stable again.

The basic principle that makes Debt Counselling the route to follow:

  • The ability to safeguard assets such as cars and homes from repossession legally.
  • Negotiations with creditors on your behalf to reduce monthly installments and/ or interest
  • With an attorney on board the ability to get court orders when creditors oppose the debt counselling proposals.
  • Leaving you in a financially better off position with one monthly installment which is distributed to creditors with money left in your pocket to service personal needs.

Any consumer who is over-indebted qualifies for debt counselling.

A consumer will be over-indebted if, after providing for the monthly living expenses and maintenance requirements of himself/herself and his/her dependents, he/she is unable to afford his/her monthly payments to all his/her creditors

Contact us or send a please call me to 079 9800 822,  or e-mail info@ouds.co.za to apply.

It is such a simple and easy process – and if you are overly in debt, also a very necessary process and step to take.   The application process will be explained to you and we will assist you throughout every step of the application. Within 5 days no legal action against you from creditors will be possible because being under debt review provides you with immediate protection.  This will give you and our debt counsellor’s time to review your finances and come up with a payment structure that will work for you.

We are one email or phone call away- If you start with the application process today, by next week this time you will start experiencing the benefits of being under debt review.  You will finally be able to continue with your life without the pressure of creditors constantly calling you.

“Let us assist you before it is too late!”

Debt counsellors are appointed through the South African National Credit Regulator (NCR) and as such endorsed by the National Credit Act. Be sure to request the Debt Counsellor to prove their appointment by means of displaying the Debt Counsellor Registration Certificate to you. The Registration Certificate will have the DC’s registration number displayed upon it, such as NCRDC2312.

A debt counsellor will become the intermediary between you and your creditors.  They will manage the communication process with your creditors and all debt payment negotiations.  Creditors are aware of the National Credit Act and they prefer working directly with debt counsellors as supposed to clients.  Your debt counsellor will take your finances under review and then design a payment plan for you.  They will also communicate with you on a regular basis to provide you with additional financial advice and support.

  • Debt Counsellors assist you by;
  • Creating a manageable budget uniquely tailored for you;
  • Negotiating a reduced interest rate (within reason) and instalment with your creditors;
  • Protecting you from harassment by your creditors and debt collectors;
  • Monitoring your payments while under Debt Counselling.

Your Debt Counsellor is there to assist you in this difficult time, make sure that you work with the Debt Counsellor and provide all the information required as quick as possible. There are very strict time-frames to debt counselling and these must be met for you to be protected.

Debt Counsellors must be trained, qualified and registered as a Debt Counsellor with the National Credit Regulator before offering Debt Counselling to a consumer. Ask your Debt Counsellor for a copy of his NCR Registration Certificate (e.g. NCRDC2312) to ensure that you are dealing with a properly registered Debt Counsellor. You can also check the registration status of a Debt Counsellor on the National Credit Regulators Register of Registrants page.

The process of Debt Counselling is a very personal process during which your debt counsellor will question you on various aspects of your financial life. This questioning may at the time feel intrusive and personal but this is to ensure that the debt counsellor is properly able to assist you. For this reason it is important to approach a trustworthy person, someone who you are able to work with at this stressed time of life. It needs to be understood that the relationship between a client and DC lasts for years, so it’s important that you trust and are forthright with your DC as he or she has to be aware of your situation in order to advise and assist you to the very best of their capacity.

While it is possible to go under Debt Counselling telephonically, or via other electronic means, it is best to meet your debt counsellor face-to-face so that you are able to identify who you are working with in order to build a relationship of trust and respect. The Debt Review process and initial meeting can almost be viewed as the same type of consultation as visiting your doctor for example. You need to sit behind a closed door with your GP and describe the symptoms your feeling and where possible show them what’s ailing you. The same can be said about Debt Counselling, its best done in person, hearing and seeing are two different things.

At Oyisa United Debt Specialists you work with only qualified Debt Counsellors and provided with the personal attention that you deserve, give us a call to book an appointment with a Debt Counsellor to discuss your situation.

Any person in South Africa that is overly in debt can apply for debt review.  If you are unable to honour monthly debt installments (refer to the signs of over-indebtedness), if you are in arrears with debt payments and if creditors are contacting you to follow up on payment – then you can apply for debt review immediately.

It is best to apply sooner rather than later, the longer the problem is ignored the more difficult it becomes to solve.

Any consumer who is over-indebted can apply for debt review. According to the National Credit Act, a consumer is over-indebted when he/she is unable to satisfy in a timely manner all his obligations under all his/her credit agreements (after paying his basic living costs).

  • In short, when you struggle to meet all your debt repayments on time; or
  • If you do not have enough money left after paying all your essential living costs to pay your debt, you are over-indebted.
  • You can apply whether you are:
  • blacklisted or not; or
  • Whether you are in arrears or not.

Debt repayments are usually reduced by between 30% and up, though this differentiates per consumer as every body’s case is unique and nobody shares the exact same debt concerns or balances for that matter. These kinds of reductions are exactly what people need, and also deserve.  The very existence of the National Credit Act was born out of the realization by The South African Government that consumers were allowed to attain more debt than what they could possibly ever afford by their creditors.  This is why we are able to negotiate debt payment reductions.

Debt Review Process Explained:
7 steps

Qualifications for debt counselling in South Africa:

  • Determined by an Oyisa debt counsellor, clients will be classified as over-indebted and considered for debt counselling “if taking all financial circumstances into consideration, a client is deemed to be unable to repay their debts”.
  • Legally, clients applying for debt counselling, must be employed and earning a monthly income
  • Most importantly, Oyisa debt counsellors aim to give clients hope for a future of financial well being and the ability to borrow credit again upon completion of the debt review process.

Applying For Debt Review

Approach a Debt Counsellor (in Person, telephonically or via email) and have the process fully explained to you.

You’ll then complete the application form and sign it; the application form is called a “Form 16”. The Form 16 must be submitted to us plus the relevant supporting documents.

As soon as we receive your form 16 you are protected from creditors.

We’ll then proceed to let your creditors and the credit bureaus know that you’ve officially applied for debt review. From the moment your creditors are informed of your application they can’t take any legal action against you.

Free Debt Assessment

Here we figure out whether you would benefit from Debt Review (whether you’re over-indebted) and what your best way forward would be.

Your DC will perform an over-indebted assessment on your situation, in other words, does your monthly expenses exceed your monthly income? You have to be over-indebted to qualify for Debt Review, if you are; you proceed to the next step.

We’ll then give you a monthly budget – expertly created by our professional team and your DC. Your budget will make sure you have enough money to pay your debt (so you don’t fall behind) and cover your living expenses (so your family is looked after).

By this stage your Debt Counsellor will determine what you can afford to pay to your creditors each month and work out a new repayment schedule. This schedule will be presented to creditors.

Repayment Plan & Proposal

We go to your creditors on your behalf and negotiate with them for a new repayment plan you can afford. Your DC advises all of your creditors that you are under Debt Counselling.

By the end of this step your creditors are happy, you are happy, and this makes us happy.

Your creditors have 10 days to provide a Certificate of Balance (C.O.B) showing all of your credit provided information in respect of your accounts with them.

Your DC will create a payment plan with you and submit the initial plan to your creditors and ask for acceptances from them.

(You will immediately start to pay a single provisional reduced monthly installment in respect of all your Credit Providers which will be affordable to you. During the first 60 working days, legal action may not be taken against you in respect of the debts that are under review.)

After receiving all the COB’s, we will restructure your payment plan and negotiate with your Credit Providers where necessary. After negotiations with your Credit Providers, your new restructured payment plan will be sent to all your Credit Providers and this payment plan will take effect.

(Your restructured payment plan will reduce your monthly debt repayments to an affordable amount, leaving you with sufficient money for your living expenses.)

Your DC will take all acceptances and/or declines from your creditors and approach the court on your behalf for a Court Order.

Legal Confirmation

Here we take your new repayment plan to court on your behalf.

We instruct our specialist attorneys to apply at court in order to make your restructured payment plan a court order. You will not have to appear in court yourself, as your Debt Counsellor will be the applicant in the matter, unless the particular magistrate requires your presence.

This is just a formality where the magistrate makes your debt review, and new repayment plan a court order. Your court order is what legally protects you, your home, your car etc… during your debt review. This document is legally binding by all parties until the last payment on the schedule is made.

(The process will now be completed and you must ensure that your monthly payments are made timeously in order to prevent Credit Providers from taking action against you.)

Step 1 – 4 happens in just 30 days!!!

Repaying Your Debt with Our Guidance & Support

You’ll feel great knowing your debt is being repaid, one simple installment monthly being paid according to your new re-payment plan is all it took, while your family’s living costs are covered and your property is protected. Even if you encounter problems our expert team is here to assist and guide you every step of the way.

With each month’s repayment you’ll be closer to your goal – conquering your debt and rising again debt free!

General Information

All your payments will be made to a Payment Distribution Agency (PDA) who will distribute your money according to your debt restructuring plan. The PDA that we are using is accredited by the National Credit Regulator and is the biggest of its sort in South Africa.

Provision is made for your Debt Counselling fees in your debt restructuring plan, ensuring that you will at all times only be making one affordable monthly payment towards your Credit Providers and your Debt Counselling fees.

We will provide you with monthly after care and monitor your payments to the PDA. 

Clearance Certificate

Once all of your debt concerns are settled in terms of your creditors listed upon your Court Order your DC will issue you with a Clearance Certificate, advise all the Credit Bureaus and creditors who must clear your record within five days of receiving a copy of the Clearance Certificate.

Victory! Receiving your clearance certificate means you’ve faced your debt head-on, stuck with the program and are now on the brink of overcoming your debt.

This is a big deal since your Clearance Certificate gives you a clean credit record – so information about your debt and your debt review will be erased from your record.

Your Fresh Start

You’ve conquered your debt; you’re now free form debt worries. You’re free to once again apply for credit, but do so cautiously, you have worked hard to reach this point don’t throw it away needlessly. Don’t let reckless credit ruin your newly achieved freedom that you fought so hard for.

Rather use your money to save for a prosperous financial future.

To OUDS your will always be remembered, gone but not forgotten so if you ever need our advise, support or any information again, we’re here for you.

Free Call Back Service

We’ll call you for your complimentary debt assessment & action plan.

In terms of the National Credit Act No: 34 of 2005, Section 156(1)(a) & (b), by law we are not allowed to disclose any of your contact information to any third party; and we do hereby undertake to honour the Act in this regard.

Debt Counselling FAQS:

I’VE BEEN SUMMONED TO COURT, DOES DEBT REVIEW COVER THIS?
No, but most attorneys and creditors will respond to the debt review program favorably and might agree to have this included into the debt review restructuring plan. Your debt counsellor however will negotiate with the creditor on your behalf and find the best possible solution for you.

CAN I APPLY FOR MORE CREDIT OR USE MY CREDIT CARDS WHILE UNDER DEBT REVIEW?
No, unfortunately the NCA prohibits you from incurring any further credit while under debt review.

CAN THE CREDIT PROVIDERS CHANGE THEIR MIND AFTER THE DEBT PLAN HAS BEEN AGREED?
NO!  As long as you maintain your obligations to the credit providers by making payments according to your new payment plan, they are not able to take further action.

WILL MY EMPLOYER AND WORK COLLEAGUES FIND OUT?
NO! All your information is treated with the utmost confidentiality. The only bodies that will know is the NCR, the Credit Bureaus, your creditors, your Debt Counsellor and whomever you choose to confide in. NOBODY ELSE!!!

ONCE I’VE CLEARED/PAID OFF ALL OF MY DEBT WILL MY NAME BE REMOVED FROM THE CREDIT BUREAU?
Yes absolutely! You will also be issued a Clearance Certificate from your Debt Counsellor attesting to the fact that all of your debt has been settled in full and that you are no longer over-indebted.

IS MY MONEY SAFE?
Absolutely! At no stage during this process do we (or anybody else) have access to your money. Your money is paid directly to an NCR accredited Payment Distribution Agency (PDA), who in turn distributes the funds to your creditors. All of this information will be discussed with you by your DC.