DO I NEED DEBT COUNSELLING?
When your monthly expenses amount to more than your income and you can’t meet your financial obligations, you are over-indebted. If you are over-indebted it is advised to seek debt counselling immediately in order to avoid accumulating more debt and to start a repayment plan that can help you become debt free again. A well restructured monthly payment plan with lower instalments will allow you to pay off your debt without having to give up your daily necessities. This will enable you live your life while becoming debt free and financially stable again.
WHEN DO I START EXPERIENCING FINANCIAL RELIEF?
Immediatedly. A provisional repayment plan is structured for you within the first five days, after consulting with Instalment Busters. You will make a single payment to a Payment Distribution Company (PDA), who will distribute the money to your relevant Credit Providers. Your Credit Providers will not be allowed to take any action against you during the first 60 working days, during which time Instalment Busters will assist you to work out your final repayment plan.
HOW ARE LOWER PAYMENTS OBTAINED?
In terms of the National Credit Act, registered Debt Counsellors are allowed to lower clients’ monthly payments by extending repayment periods, and in some cases by lowering current interest rates.
WHAT IF DEBT COUNSELLING WILL NOT WORK FOR ME?
After consulting with Instalment Busters and establishing that Debt Counselling is not the best option for your particular situation, we will refer you to one of our preferred service providers to help you with the most appropriate way forward.
WHAT HAPPENS IF MY CREDIT PROVIDERS DO NOT ACCEPT MY DEBT REVIEW?
If we feel that your offer towards your Credit Providers is reasonable, then we will make every effort to convince the court that the Debt Review must be made an order of court – even if your Credit Providers do not agree. If your Credit Providers take action against you in these circumstances, then the monthly payments that should go towards those particular Credit Providers may in certain circumstances be used to defend such actions.
Credit Providers want to recover their money. It is very unlikely that it will not be accepted, should your repayment plan be reasonable.
WILL MY CREDIT PROVIDERS STILL CONTACT ME IF I AM PLACED UNDER DEBT REVIEW?
Instalment Busters notify your Credit Providers within five days (usually less than 48 hours) that you have been placed under Debt Review. From there they are required, by law, to communicate with your Debt Counsellor and not with you directly. Sometimes some Credit Providers take the chance to contact clients directly. In such a case, you merely refer them to Instalment Busters.
WILL I LOSE MY VEHICLE OR MY HOUSE WHEN I AM PLACED UNDER DEBT REVIEW?
Debt Review cannot cause you to lose your vehicle or your home. It can however help you keep them! This obviously depends on your specific circumstances. Factors that will determine this will include the following:
- Have you received a section 129 letter from your Credit Provider within the last 10 working days? If so, you will have 10 working days in which you can obtain the services of a Debt Counsellor, who will make the effort to save the asset.
- Have you been served with a summons in respect of your mortgage bond or vehicle finance?
- How many vehicles do you have and what are they used for? Luxury vehicles, like quad bikes and jet ski’s, might have to be returned to the bank.
- Are you giving your full cooperation in the programme?
You will always be in a better position to keep your vehicle and your home if you are under Debt Review with the assistance of a Debt Counsellor.
HOW LONG WILL I REMAIN UNDER DEBT REVIEW?
It will depend on your unique situation. To lower your monthly instalments, Instalment Busters has to extend your repayment periods. In some cases we manage to successfully convince Credit Providers to also lower their interest rates, which means that your repayment period will not be lengthened too much.
Your last day of payment will be indicated on your debt repayment plan. If you perhaps receive a significant salary raise or inherit a substantial amount of money, and you are in a position to pay off all your debt or make an improved payment arrangement with your Credit Providers, you can contact Instalment Busters. We will end your Debt Review on your instruction and inform the Credit Bureaux to remove the Debt Review flag behind your name.
WHAT COSTS ARE INVOLVED WHEN PLACED UNDER DEBT REVIEW?
The objective is to help you become debt free. Instalment Busters’ fees are regulated by the National Credit Regulator and are reasonable. Our fees are explained in detail when you contact us. Remember, they are included in your agreed debt repayment plan.
DO I NEED TO APPEAR IN COURT IN ORDER TO MAKE MY DEBT REVIEW AN ORDER OF COURT?
It will not be necessary for your to appear in court. Your Debt Counsellor will act as the applicant and you will merely be a respondent. Once our attorneys notify us of the outcome, Instalment Busters will immediately notify you.
In the unlikely event that the Magistrate does request you to appear in court, it would merely be to confirm certain facts. You will not be questioned by any attorneys, as this would merely be a court application and not an action procedure.
WILL MY EMPLOYER BE AWARE THAT I AM UNDER DEBT REVIEW?
No. Clients are never contacted at work, unless we are instructed to do so.
CAN I BE “BLACKLISTED” BY CREDIT PROVIDERS WHILE I AM UNDER DEBT REVIEW?
No, your Credit Providers cannot “blacklist” you while you are under Debt Review. If the “blacklisting” took place prior to you applying for Debt Review, it will however reflect on your credit record. This is why it is important to apply for Debt Rerview sooner than later.
IF I AM UNEMPLOYED, IS IT POSSIBLE TO APPLY FOR DEBT REVIEW?
You need to have a monthly income to be placed under Debt Review, which puts you in a position to make a reasonable offer to your Credit Providers. Debt Review will not be the ideal solution for you if you are unemployed and do not receive any other income like rental income or pension. You should however still contact Instalment Busters, as there are other solutions available that might be helpful to you.
CAN INSTALMENT BUSTERS STILL HELP ME IF I HAVE BEEN SUMMONSED TO COURT?
You can still contact Instalment Busters. There might be other ways to help you. The sooner you contact us, the better our changes are of finding a workable solution for you.
WHAT IF I ALREADY HAVE JUDGEMENTS AGAINST ME?
You can still contact Instalment Busters. There might be other ways to help you. The sooner you contact us, the better our changes are of finding a workable solution for you.
WHILE I AM UNDER DEBT REVIEW, CAN I APPLY FOR MORE CREDIT OR USE MY CREDIT CARDS?
As the idea is to help you become debt free you will not be allowed to incur further debt while being under Debt Review. Once your commitments towards your Credit Providers are satisfied, Instalment Busters will issue you with a Clearance Certificate, where you will be in a position to apply for credit again.
HOW WILL DEBT REVIEW INFLUENCE MY CREDIT RECORD AND WILL I BE ABLE TO APPLY FOR CREDIT AGAIN IN THE FUTURE?
A flag indicating that you are under Debt Review will be present behind your name at the Credit Bureaux, while you are under Debt Review. Once you have satisfied your debt obligations, Instalment Busters will instruct the Credit Bureaux to remove the flag, leaving no indication of you ever being under Debt Review.
If you do not apply for Debt Review, the situation is much worse. Skipping monthly instalments on any of your credit agreements, whether a mortgage bond or a clothing account, will be listed as non-payments.
To retain the option of applying for credit in future, when you are financially stable again, it would be a wise choice to rather opt for Debt Review. Trying to juggle payments to your Credit Providers is not a good route to follow.
WHAT HAPPENS IF I GET RETRENCHED WHILE BEING UNDER DEBT REVIEW?
This would pose a problem to your Debt Review process, as you have to honour your monthly payments in respect of your debt repayment plan. Should this happen and you do not immediately obtain another source of income to satisfy your monthly instalment in terms of your debt repayment plan, you should contact Instalment Busters immediately to find an alternative solution for you.
WHAT HAPPENS IF I WAS INVOLVED IN AN ACCIDENT AND CANNOT PAY MY MONTHLY DEBT REVIEW INSTALMENT?
Reasonableness is the determining factor. If you can prove that you were not in a position to pay, as you were in hospital for instance, we can send a notification to your Credit Providers. In all probability it will be accepted and your Debt Review will continue.
Important to note: Debt Review does not provide payment holidays. Debt Review should never be abused to avoid your obligations.
WILL DEBT REVIEW HAVE A NEGATIVE IMPACT WHEN I APPLY FOR ANOTHER JOB IN FUTURE?
It should not have a negative impact. If your potential employer does a credit check and sees that you are under Debt Review at the time, it will show that you took responsibility for your financial situation.
The alternative would be much worse. If your potential employer becomes aware that you have defaults on your credit record and you did nothing about it, it would damage your reputation.
WILL MY INSURANCE POLICIES BE AFFECTED BY DEBT REVIEW?
Not at all. Provision is made in your debt repayment plan for all your insurance policies.
DOES INSTALMENT BUSTERS PROVIDE CONSOLIDATION LOANS?
Our goal is to help you become debt free. Further loans will not solve your financial problems, hence we do not offer any loans.
