Get help for your debt: Before it’s too late! Featured on Fin24

Everyone knows the saying too little too late’. But when it comes to debt review, when is it too late to apply?

Debt review or debt counselling is a process in terms of the National Credit Act, Act 34 of 2005, where a consumer who is over indebted (a consumer who is unable to satisfy timeously all the obligations under all the credit agreements to which the consumer is a party to) applies to a debt counsellor to assist him or her in restructuring his or her debt with credit providers by reducing the monthly instalment and extending the term of the credit agreement.

According to statistics approximately 54% of all credit active consumers are over indebted with some statistics saying it is more than 60%.

These over indebted consumers are likely to have legal action instituted against them by credit providers. Before credit providers are however allowed to institute legal action they must send a notification in terms of Section 129 of the National Credit Act advising consumers of the default and informing them to approach a debt counsellor, ombud or consumer court within 10 days.

After the 10 days the credit provider may institute legal action by issuing summons. As soon as summons is served on a specific account, that account cannot form part of the debt review.

Consumers are therefore advised to seek debt counselling assistance as soon as they realise they are struggling to satisfy their obligations under credit agreement and definitely as soon as they receive a Section 129 letter.

The advantages of applying for debt review is that credit providers cannot issue summons after the debt review process has been initiated and they must act in good faith and participate in the debt review process.

During the debt review process the debt counsellor will negotiate a reduced instalment and can even negotiate a reduced interest rate. This new agreement or proposal will then be referred to court to be made an order of court for the consumer’s protection.

Zero Debt is a registered debt counsellor with the National Credit Regulator with more than 6 years of experience. Our mission at zero debt is to help consumers achieve a zero debt status!

Article featured on Fin24

If you find yourself struggling to keep up with debt payments, it’s crucial to act before it’s too late. As highlighted in our article featured on Fin24, debt review or debt counselling can provide the lifeline you need. By applying for debt review early, you can protect yourself from legal actions by credit providers and work with a professional debt counsellor to restructure your payments, potentially lowering your monthly instalments and interest rates. At Zero Debt, we have over six years of experience helping consumers regain control of their finances. Don’t wait until it’s too late—if you’ve received a Section 129 letter or are struggling to meet your obligations, contact us today. Our experienced team is here to guide you through the debt review process and help you achieve a zero debt status. Take the first step towards financial freedom and reach out to us through our Contact page now.

FAQs and Answers

1. What is debt review and how does it help?
   Debt review, also known as debt counselling, is a legal process under the National Credit Act that helps over-indebted consumers restructure their debt. A debt counsellor negotiates reduced monthly payments and interest rates with credit providers, ensuring affordable repayment and legal protection.

2. When is it too late to apply for debt review?
   It is too late to apply for debt review if a credit provider has already issued a summons on a specific account. Once a summons is served, that account cannot be included in the debt review process. It is advised to seek debt counselling as soon as you struggle to meet your financial obligations.

3. What happens if I receive a Section 129 letter?
   A Section 129 letter is a legal notice from a credit provider warning you of default and advising you to seek debt counselling within 10 days. If no action is taken within this period, the credit provider can proceed with legal action, including issuing a summons.

4. Can credit providers take legal action against me once I apply for debt review?
   No, once you apply for debt review, credit providers cannot issue summons or proceed with legal action. They are legally required to participate in the debt review process and act in good faith.

5. How does debt review affect my monthly payments?
   Under debt review, a debt counsellor negotiates lower monthly instalments and possibly reduced interest rates with your credit providers, making your payments more manageable. The new repayment agreement is then made an order of court for legal protection.

6. What are the benefits of applying for debt review early?
   Applying for debt review early protects you from legal action, prevents repossession of assets, and allows you to restructure your debt into a single, affordable monthly repayment. It also helps improve your financial stability over time.

7. Is Zero Debt a registered debt counselling firm?
   Yes, Zero Debt is a registered debt counsellor with the National Credit Regulator. With over six years of experience, we specialise in helping consumers achieve financial stability and work towards a debt-free future.

8. How can I get started with debt review?
   If you are struggling with debt repayments or have received a Section 129 letter, contact Zero Debt today for a free assessment. Our expert debt counsellors will guide you through the process and help you secure financial relief.