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What is debt review?

  • If you are over-indebted and falling behind with your debt repayments, debt review can protect your assets. This debt protection forms part of the National Credit Act. Credit providers cannot take legal action against you if you go under debt review. Zero Debt also consolidates all your debt into one monthly payment which is affordable based on your circumstances and reduces your interest rates. This means that aside from the protection of your assets, you will also end up paying less for your debt on a monthly basis.

Is debt review better than a consolidation loan?

  • You will not qualify for a consolidation loan if you are over-indebted. Not with us and not with anyone. If your current debt status is that you are over-indebted, you do not have the option of a consolidation loan. The only realistic & affordable way to prevent you from losing your assets is to go under debt review. Our debt review process can offer you immediate asset protection as per the National Credit Act and set you on a course of recovery from debt problems by consolidating your debt into one affordable monthly repayment, reducing your monthly debt repayments & interest and clearing your credit record after you have fulfilled your restructured debt obligations.

Am I over-indebted?

  • Are you struggling to repay your debt? Have you fallen behind on your scheduled debt repayments or are you at risk of falling behind in the immediate future? These are signs that in all likelihood you are over-indebted. It is also so that the sooner that you apply for debt review, the better. Once a credit provider commences with legal action, there is a risk that the particular debt cannot be included in your debt restructuring plan. Why stress & lose sleep any longer? Request a callback and we can start completing your free debt assessment today!

Is Zero Debt registered in accordance with the National Credit Act?

  • Zero Debt has been registered with the National Credit Regulator (NCR) since 2009. You can view our registration certificate by clicking the NCR link at the bottom of the page. All our debt consultants are registered with the NCR and have years of experience in advising consumers on the appropriate debt solutions which are applicable to their circumstances.

Debt Review-How long will it take before I feel relief?

  • You will immediately experience the relief that our debt review process offers. Within the first 5 days, we will work out a provisional repayment plan for you which is based on what you can afford. In terms of the provisional repayment plan, you will make a single monthly payment to a Payment Distribution Agency (PDA) who will then distribute the funds based on your repayment plan. During the first 60 working days of the debt review process, your credit providers will not be allowed to implement any legal action against you. During this 60 day period, we will prepare your final repayment plan.

Can I apply for debt review if I am unemployed?

  • You need a monthly income in order for us to propose a reduced debt repayment plan to your credit providers. You will therefore not qualify for debt review if you are currently unemployed. We therefore suggest that you find a new job and then contact us for assistance with your debt if you are still over-indebted.

Will my employer know I am under debt review?

  • No, we will never contact your employer to obtain any information or to confirm anything. Your debt review application is treated as fully confidential through the entire application and debt review process.

How does Zero Debt manage to lower my debt repayments? Why can’t I do it myself?

  • In terms of the National Credit Act, debt counsellors are allowed to lower your monthly instalments by extending your repayment periods and by lowering your current interest rates. We have extensive experience in dealing with a lot of credit providers and know the ins and outs of the process through practical experience – no one is therefore better positioned to restructure your debt repayments!

If I am placed under debt review will my creditor providers still contact me?

  • As soon as you apply for debt review through Zero Debt, we will within 5 days (usually less than 48 hours) notify all your credit providers that you are going under debt review and from that point onwards they must, by law, communicate with your debt counsellor and not with you directly. It does unfortunately happen from time to time that some credit providers take a chance by making contact with our clients directly, but when this happens, you can merely refer them to us and we will deal with the matter further.

Will I be required to go to court?

  • Part of our debt review process is to obtain a court order on your behalf in order to enforce your restructured debt arrangement plan on your credit providers. This process is however handled by referring your case to our nominated attorneys. They will contact you in order to obtain all the necessary information in order to compile your application and they will obtain the court order on your behalf. You will therefore not be required to attend court proceedings.

What are the attorneys appointed for?

  • We appoint attorneys to obtain a court granted order for you. This is to prevent creditors from wrongfully terminating your application. You are then legally protected and your creditor providers will not be able to terminate your debt restructuring agreement or take any legal action against you.

Will credit providers still debit my bank account?

  • When you apply for debt review, we notify all your creditors to cancel your debit orders. We do however suggest that you open a new bank account at another financial institution in order to prevent unauthorized money grabs by your creditors.

Can I still rent a property if I am under debt review?

  • The debt review process as such is not classified as a credit agreement and you will therefore able to rent a property. In fact, we will make provision for your rent expense in your debt restructuring budget and can provide the agent or lessor with a letter that confirms that you are in a position to pay your monthly rent.

What happens with my property bond if all my debt is paid off after I have completed the debt review term?

  • You have the option to cancel the debt review process once all your unsecured debt has been paid off. If you still cannot afford the full bond instalment, we suggest that you continue with debt review until such time that you are in a position to pay the full required instalment on your own.

What costs will I incur by applying for debt review?

  • The costs that you incur consists of debt counselling fees and legal fees. The debt counselling fees that we charge are regulated by the National Credit Regulator and should be the same regardless of which registered debt counselling company you use. The precise costs will depend on the type of debt that you have and the amount of your monthly repayment. Legal fees are also determined based on the type of debt that you have and the amount of your monthly repayment. Both the debt counselling fees & legal fees are incorporated into your debt restructuring plan which means that you will not need to pay any separate upfront fees in order for your application to be processed. Please refer to your application form for more details on how these fees are calculated.

Are there any accounts that do not get included?

  • Only credit agreements as defined in the National Credit Act may be included in the debt review process. Accounts such as doctor and cell phone accounts are excluded. Also excluded are accounts in respect of which legal action has been initiated (prior to your application for debt review) or where judgement and/or garnishee order(s) have been instituted.

Is debt review the same as being put under administration?

  • No. Administration only applies to consumers whose total debt do not exceed R50,000 and normally lasts much longer and is much more costly. We aim to achieve a debt free status within 36 to 60 months.

Will I be listed on ITC or the credit bureau?

  • You cannot be listed on ITC when you are under debt review. When you apply for debt review, we notify the credit bureaus to merely flag your name. The flag is basically an indication to credit providers that you are under debt review.

What is the term or period for this process?

  • We work out the best possible debt restructuring proposal for our clients. We attempt to reduce the interest rates on all your debt by as much as we can and our main aim is to reduce your monthly debt obligations based on what is affordable in your circumstances. This process enables our customers to repay all their debt while still having sufficient funds available for their living expenses.

A credit provider has obtained a garnishee order against my salary. Can I include this account in my debt review application?

  • We cannot include any accounts in the debt review process where legal action has commenced. It is therefore important that you apply for debt review sooner rather than later. If you already have a garnishee order against you, we can make provision for the monthly amount in your restructured debt plan.

What is unsecured debt?

  • Examples of unsecured debt are credit card debt, personal loans, store cards, etc. Unsecured debt basically includes all debt where the debt is not secured against an asset like a property or a vehicle.

How does Zero Debt manage to lower my debt repayments? Why can’t I do it myself?

  • In terms of the National Credit Act, debt counsellors are allowed to lower your monthly instalments by extending your repayment periods and by lowering your current interest rates. We have extensive experience in dealing with a lot of credit providers and know the ins and outs of the process through practical experience – no one is therefore better positioned to restructure your debt repayments!
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