{"id":728,"date":"2023-07-13T23:22:21","date_gmt":"2023-07-13T23:22:21","guid":{"rendered":"https:\/\/adcounsellors.co.za\/?page_id=728"},"modified":"2023-07-13T23:45:06","modified_gmt":"2023-07-13T23:45:06","slug":"faq","status":"publish","type":"page","link":"https:\/\/adcounsellors.co.za\/?page_id=728","title":{"rendered":"FAQ"},"content":{"rendered":"\t\t
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Frequently Asked Questions<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Any Questions?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tDo I still have to pay interest on my debt while the accounts are under debt review?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Yes.<\/p>

Interest is part of the contractual obligation you have entered into. While the NCA does not make provision for the debt counsellor to make changes to the interest rate, through negotiation with your credit providers we are often able to get very significant concessions on the interest rates.<\/p>

Any concession on the interest rate is at the credit provider\u2019s discretion.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I place a debt under debt review if I have already received a summons for that debt?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

No.\u00a0<\/p>

Prior to issuing summons the creditor MUST send a letter of demand in terms of Section 129 of the National Credit Act.\u00a0 In that letter you are given 10 days to consult a debt counsellor.\u00a0 If the credit provider does not receive an application for debt review and you make no other arrangement with the credit provider then they will instruct an attorney to issue summons.\u00a0 Once the summons has been served the debt cannot be placed under debt review.\u00a0 This does not preclude you from placing your remaining debt under debt review to try and free up money to make an arrangement on the debt which is now \u201clegal\u201d.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I open new accounts while under debt review?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

No.\u00a0<\/p>

The object of debt review is to become debt free so while you are under debt review you may not enter into any further credit agreements.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I pick and choose which accounts to place under debt review?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

No.\u00a0<\/p>

You may not prefer one credit provider over another and you may not make use of any credit facilities whilst under debt review.\u00a0 Again, the object of debt review is to become debt free.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tIs Debt Counselling a consolidation loan?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

No.<\/p>

A consolidation loan is a loan which is taken out to settle all your smaller existing debt.\u00a0 You then only have one large debt to repay.\u00a0 What happens in practice is that consolidation loans are taken out at the maximum interest rate, all existing debt is settled and a month or two later temptation sets in and the \u201csettled\u201d accounts all become active again and the balance owed creeps up and up and you land up with twice the amount of debt you had prior to taking the consolidation loan.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I skip payments once I am under debt review?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

No.\u00a0<\/p>

Missing a payment is considered a default and your creditors may withdraw from the debt review process and cancel any concessions.\u00a0 This means you will go back to paying the full monthly instalment and the full interest rate or the creditor can proceed with legal action.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tAre there fees that must be paid?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Yes.\u00a0<\/p>

Debt counselling fees are regulated by the National Credit Regulator.\u00a0 The fees are recovered from your monthly payments and are calculated into the restructured payment plan.\u00a0 Once you agree to continue with the process there is an initial fee of R350+VAT (R402.50) to cover the administration costs of credit checks etc. The Debt Counselling fee and legal fee are recovered from your monthly payment.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I include arrear rates and taxes and arrear school fees in my debt repayment plan?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Yes and no.\u00a0<\/p>

These are not credit agreements and are generally not included in the debt restructuring plan.\u00a0 They are budgeted for as part of your living expenses.\u00a0 If, however the agency collecting the debt agrees to include the debt in the repayment plan then, and only then, can these accounts be included in the debt restructuring.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat happens if I am retrenched?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Credit agreements often have credit life insurance included in your monthly instalment.\u00a0 Depending on the policy this often covers retrenchment, death and critical illness with different cover options.\u00a0 Where the linked insurance is excessively expensive we offer an alternative product through\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 One Sure to reduce the amount you are paying on insurance.\u00a0 If you have no linked insurance you can take out new cover.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tCan I withdraw from debt review?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

You can only withdraw from the process before the debt counsellor confirms to your credit providers that you are over-indebted.\u00a0 From date of signing the application you have a 5 day window to withdraw.\u00a0 Once you are declared over-indebted and before a debt -restructuring order is granted, you need a court order to declare that you are no longer over-indebted.\u00a0 Once a court order restructuring your debt is granted you need a clearance certificate to exit debt review.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tMust I pay off my home loan before I can be issued with clearance?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

No.<\/p>

Clearance can be issued once all your short term debt has been settled and if your debt review payments on your home loan are up to date.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t<\/i><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\tWhat is the difference between administration and debt review?<\/a>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t

Administration is for debtors with less than R50\u00a0000 worth of debt. Home loans and vehicle finance cannot be placed under Administration.\u00a0 Judgment debt can be placed under Administration but not under debt review.\u00a0 Administrator\u2019s fees are not regulated and payments to credit providers are made quarterly not monthly.\u00a0 No negotiation is entered into with your credit providers when placing debt under administration.<\/p><\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Still Have Questions<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\n\t\t\t\t\t\t<\/span>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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We’re here to answer them<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t<\/i>\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\tGet in touch<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Frequently Asked Questions Any Questions? Do I still have to pay interest on my debt while the accounts are under debt review? Yes. Interest is part of the contractual obligation you have entered into. While the NCA does not make provision for the debt counsellor to make changes to the interest rate, through negotiation with […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"enabled","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-728","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=\/wp\/v2\/pages\/728","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=728"}],"version-history":[{"count":17,"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=\/wp\/v2\/pages\/728\/revisions"}],"predecessor-version":[{"id":746,"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=\/wp\/v2\/pages\/728\/revisions\/746"}],"wp:attachment":[{"href":"https:\/\/adcounsellors.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=728"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}