Friday, 4 October 2013

Debt Counselling / Debt Review Explained. l over indebtedness, credit market, consumer protection, debt consolidation, credit providers, NCA, National Credit Act, National Credit Regulator, garnish order, insolvency, sequestration, debt collection.

Debt Counselling offers a remedy to over indebtedness that has the aim at rehabilitation into the credit market.

Insolvency SA comment:
What this means is that the act has the purpose of helping people pay their debt obligations. The method used is to pay reduced installments to credit providers, IF THEY AGREE, over a longer term than the original agreement without any cessation of interest charges. Debt that you normally would have paid off in 2 or 3 years will now take you 5, 6 or even 10 years with no cessation of interest charges.
This means you could pay up to 300% more in debt that you originally had.
If you own a property paying less than the installment even for a short period like a year will snowball the debt to unmanageable proportions.
The only people benefiting from a Debt Review arrangement is the credit providers, they hook you for more money and for a longer period. Regardless of what they say their good intentions are.
.....close of comment.

Debt Review will protect the consumer from losing crucial assets and keep the Credit Providers from taking legal action on accounts that was lawfully included in the debt review. Any consumer can apply for debt counselling, upon which an assessment will be done to determine the state of over indebtedness. If a consumer is found to be over indebted, the Debt Counsellor will notify all Creditors and negotiate with them in an effort to get the term of each credit agreement lengthened and/or the instalment reduced. In many cases the Credit Providers even agree to a reduced interest rate.

All monthly debt obligations will then be consolidated into one monthly installment that will cover all obligations under the debt review.
Should all Credit Providers agree to the proposed debt re-arrangement, the Debt Counsellor will file an application with the Magistrate's Court to obtain a consent order which will then enforce the agreed debt re-arrangement.
Should a situation arise where not all of the Credit Providers agree to the proposed terms of the debt re-arrangement, the Debt Counsellor will file an application with the Magistrate's court in an attempt to get a court ruling on the proposed terms of the debt re-arrangement.

Insolvency SA comment:
What this debt counsellor fails to disclose is that not all debt can be included in a debt review application. The moment a credit provider starts legal proceedings that specific debt is excluded from any future arrangements. What would be the point of implementing a solution if you can only treat part of the problem?
If you had a tumor would you only agree to remove a part of it?
Another factor is the cost of applying for Debt Review, currently as of 2 October 2013 the cost of the application is up to R6000 excluding attorneys fees and legal costs.
If you should lose your income the entire arrangement falls apart and you are again exposed to legal action. You would have wasted all the months you have paid up to that date.......close of comments.

The consumer will then make monthly payments according to the debt re-arrangement until balances have been settled or if the consumer is able to continue with payments at the original contracted rates and installments.

As soon as the consumer has settled all obligations in terms of the debt review, the debt counsellor may issue a clearance certificate, indicating that the consumer is now rehabilitated.

Insolvency SA comment:
Debt Review / Debt Counselling is a ticking time bomb, massive consumer debt is accumulating and debtors are forced to struggle to pay this debt for many years.
The National Credit Act and National Credit Regulator powerless to stop it.

All this when there is a perfectly legal, age-old tested solution in the form of insolvency. Simply put, you are insolvent when your liabilities exceed your assets or when you are no longer able to pay your debt. For hundreds of years this has happened to many people, you are in good company.
Here are a few simple facts that make insolvency better than Debt Review:
• With insolvency, you are protected from any further or future legal action from creditors.
• All debt is included in the process regardless of the status.
• Cost are the same and in some cases cheaper than debt review, regardless of what people tell you.
• You can be debt free in as little as 18 months.
• Any interest and legal cost are stopped at the moment of application.
• With Debt Review you repay 100% of your debt. With insolvency you pay 25%, the rest is written off.


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I am able to consult on the following matters:
1) Insolvency applications.
2) Debt assessments.
3) Removal of debt review, administration orders, and salary attachments/garnish orders.
4) Credit profile clearance.
5) Any matter related to debt or debt collection where you feel you are being harassed or treated unfairly.

1) Trust registrations.
2) Business registrations.

1) Debt consolidation.
2) Buying a property, getting a home loan.
3) Second bonds.
4) Alternative property finance.
5) Advice on secured and unsecured debts. Short term loans.
6) Buying and financing a vehicle.

When you are owned money, whether you are a person or business.
1) Debt collection for individuals.
2) Debt collection for business or Commercial debt collection.
3) Black listing or Default listing of debtors.
4) Debtors management.
5) Credit policy audits.
6) Property owners or Landlord assistance, Evictions.
7) Debtor tracing.

1) Verification of criminal records for employment or private use.
2) Removal of criminal records.

Doing business is risky as it is, before you do business with anyone, obtain my due diligence report on whoever you are dealing with to make sure you don't risk more that just your money.

Before you enter into a relationship, discreetly verify and check the history of the person you plan to share your life with.
A report can reveal among other things:
• Past or current relationships that has ended badly.
• Previous protection orders or acts of violence.
• Any criminal records.
• Any marriage records.
• Any past or pending legal action that might affect you.
• Any financial or credit related problems.
These are just a few of the items available.