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.