FAQ

Due to the endorsement of the National Credit Act 34 (of 2005) in 2007, Debt Counsellors started their profession in the Debt Counselling industry. Debt Counsellors are required in terms of section 86(6) to conduct an assessment concerning the over-indebtedness of a consumer. Through the Debt Counselling or Debt Review process that we have a Debt Counsellor, therefore, offers a responsible and regulated rehabilitation remedy to an over-indebted consumer or individual. If the Court declares an individual as "over-indebted" and the person goes under Debt Review, the Debt Counsellor needs to remain a person of trust and integrity. Typical tasks involve the following (but are not limited to): negotiating with creditors, taking care of the necessary registration processes and various behind-the-scenes administrative tasks.

The National Credit Act (NCA) must be read with the National Credit Regulations (the Regulations) promulgated in terms of the NCA (or "The Act"). The Regulations are complementary to their enabling sections in "The Act". They provide for matters not specifically dealt with by sections of "The Act". The Regulations became operational on Friday, 13 March 2015.

Over-indebtedness refers to a situation when you do not have the means to meet all of your debt obligations or financial commitments at the end of each month. Read the following article to assist with further details about the concept:

It is your RIGHT to ask the relevant creditors (that declined your application) for insight into why the application was rejected.

And, you have the RIGHT to pull one free credit profile per year, investigate your credit profile and make sure that there are no irregularities on the profile that might affect your credit score in a negative manner.

A credit profile shows the credit providers what your credit health is as well as how you manage your credit/pay credit agreements.

It is, unfortunately, true that without a credit record the institutions cannot see that you are a good "payer of credit", especially on a large amount.

Our advice as debt industry leaders will be to open a credit agreement (for example, a credit card or store card) and build your credit record in a controlled manner.

Keep in mind that while trying this method, you should always regulate your income, expenditures and debt amounts.

Good luck with (slowly but surely) building a good credit record. And, continue to sustainably manage your debt the way you have already set forth.

A service agreement is an agreement where the service provider performs physical work (labour), services or responsibilities for or on behalf of the customer/consumer/client against compensation or payment.

Typical service agreements include gym memberships, phone, or data contracts, for example.