Prime Debt Solution Debt Review.
What is Debt Review?
What is debt counselling?
Would you like to know more about the debt review process that has helped hundreds of thousands of South Africans get out of debt?
Here’s a brief explanation:
In 2007 a new Act was made into law called the National Credit Act (the NCA).
The purpose of the Act was to regulate how credit is granted, who can give and get credit and what can be done if people have problems paying for their debt.
In the NCA there is a particular section (Section 86) which deals with what to do if a consumer has too many debts, too many obligations and not enough money to pay for everything. This section specifically mentions something called debt counselling also known as debt review.
Debt Counselling (according to the Act) would be advice about your debt from a qualified debt counsellor. A Debt Counsellor would be registered with the National Credit Regulator or NCR (which is an industry watchdog – of sorts.)
Over time, the National Credit Act has been updated or amended which helped make debt review even more effective. Worldwide there has been a move to provide consumers with counselling in regard to the use of credit and in dealing with their debt.
The National Credit Regulator was created by the National Credit Act. The NCR register Credit Providers who offer credit and Debt Counsellors who offer debt review services. They also register other parties to the credit industry like credit bureaus and Payment Distribution Agents [PDA]
Debt Review Process
Our handy guide below will explain the process to be followed when you consider a Debt Review.
Step 1
Upon deciding to enter debt review, you will need to complete and submit form [FORM 16] alongside necessary documents like ID, Payslip and Bank Statements within 5 days of application. We review and evaluate your information to determine whether you qualify for debt review services
Step 2
Notification to Credit Providers [FORM 17.1] within 5 days of receiving your debt review application, we notify your credit providers that you have applied for debt review. From here, you and your assets are immediately protected under the National Credit Act
Step 3
Credit providers will respond with a certificate of balance detailing your account information within 5 days after receiving FORM 17.1.
Step 4
After discussing our restructuring proposal with you, we send it to your credit providers, who have up to 10 working days to accept or respond with a counteroffer. First instalment will be paid to Debt Counsellor.
Step 5
You begin to pay the restructured amount to our PDA who then distributes payments to your credit providers according to the proposal and or court order. You can get detailed statements each month.
Step 6
Within 60 days of receiving your application, our debt specialist attorneys will obtain a Court Order to confirm the restructuring plan, providing legal protection and stopping any legal action against you, remain protected during the process and simultaneously legally reduce your interest rates.
We have our legal team that can handle it on your behalf. You only need to pay a once off legal fee and we will take this out from your second payment
Step 7
Once all restructured debt is paid off, we will issue a clearance certificate and notify credit bureaus to clear your credit record and removing the debt counselling indicators from your credit profile. We make sure your credit profiles are updated, and we make sure that all your creditors’ records show no signs of you being under debt review
The Benefits of Debt Review
Consolidate Your Debt
Pay a single monthly instalment instead of multiple loans or an expensive consolidation loan with high interest rates
Protect Your Assets
Protect your house, car and other assets from repossession by your Creditors.
Reduce Your Interest Rates
We negotiate your interest rates with your Creditors to ensure that you enjoy the lowest interest ratye possible..
Free Up Cash For Household Expenses
Pay what you can afford to ensure that you and your loved ones still enjoy life.
Get a Fresh Start, Debt Free
You cannot borrow new credit while on debt review and at the end of the process you start with a blank slate.
Stop Angry Calls from Creditors
Stop calls from credit providers and debt collectors and threatening messages from Lawyers.
A Flexible Debt Solution
You can make extra payments at any time to settle your total debt faster.