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CLEARDEBT offers people who are over-indebted a way to negotiate a more affordable repayment plan with their creditors. The process is provided for in the National Credit Act (NCA), which became fully effective on June 1 2007, and applies to credit agreements entered into before and after that date.
Debt Counseling was formally presented by the National Credit Act to help over-indebted consumers, particularly in our current economic climate. The objective of Debt Counseling is to create a payment reasonable to you, and acceptable to all your credit providers. Debt Review and the Act was enacted to help you the consumer benefit from its protection.
All ClearDebt fees are regulated by the National Credit Regulator (NCR) and are included in your affordable debt repayment plan. Your monthly debt review payment amount is specific to your situation and how much you owe on your debt in total. All Debt Counsellors are permitted by the NCR to charge certain fees which include:
A once off Application fee of R350(excl. VAT).
A once off restructuring fee equal to the first month’s payment which is limited to a maximum of R8000 (excl. VAT) for a single application and R9000 (excl. VAT) for a joint application.
A monthly after care fee of 5% (excl VAT) of the debt review payment, with a maximum of R400 (excl VAT)
You will always be in a better position to keep your home and your vehicle when you are under Debt Review, rather than trying to negotiate with the banks yourself.
Once you enter into Debt Review your creditors may not exercise or enforce by litigation or any other judicial process any right or security under that agreement until the Magistrate’s Court hearing the matter makes a decision which it considers to be just in the circumstances.
Debt Review can and will save your home and vehicle, but this will depend on your unique situation. Criteria that will determine this will include the following:
• Have you received a Section 129 “letter of demand” from your Credit Provider, and if so, how long ago? If you receive a Section 129 letter from your Credit Provider, you will have 10 working days in which you can obtain the services of a Debt Counsellor, who will endeavour to save the asset.
• Have you been served with a summons in respect of your mortgage bond or vehicle finance?
• Are you paying according to our Debt Review plan and giving full cooperation in the program?
Immediately, Your budget will be calculated to allow you reasonable living expenses, whilst paying your creditors an amount that is affordable to you. Direct payment towards the creditors will stop, and a reduced monthly payment will be made towards the National Payment Distribution Agency (NPDA) appointed by the National Credit Regulator.
This will depend on your level of indebtedness and commitment to the process. Remember, it took a while for you to reach your current state of indebtedness so reaching financial health will not happen overnight.
a. Proof of income (pay slip)
b. If working overtime or for commission, include at least 3 months of salary slips
c. Copy Of ID
d. List ALL creditors and include ONE recent statement for every creditor
e. When handed over to an attorney, list attorney, together with creditor
f. Credit Bureau report (debt counsellor may draw this at R50 each)
g. When married in Community of property, the spouse ‘s details MUST be included
h. List of Essential Monthly Living Expenses
Usually No. You have to earn an income for ClearDebt to be able to assist you, however if you have someone that can pay your payment plan on your behalf you may apply.
When you apply for debt review ClearDebt will notify all your Credit Providers that you are under Debt Review and from that point onward they must, by law, communicate with your us and not with you directly. It does unfortunately happen from time to time that some Credit Providers take a chance by contacting consumers directly. Should this ever happen, you can merely refer them to ClearDebt who will deal with the matter further.