FAQs
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Frequently Asked Questions
What is debt review / debt counselling?
A registered debt counsellor will reduce all your debt repayments to the creditors and draw up an acceptable payment plan also giving you legal protection from losing any assets.
How do I know if I’m over-indebted?
How long will it take to experience relief?
Immediately – from your next pay date. We will start negotiations immediately with your creditors and reduce payments before your next pay date.
Do i need to open a savings account with another bank?
Yes, this is so we can protect your income. Even though we notify your creditors immediately of your application there is still the possibility money will be taken from your bank account. To avoid this we advise you to change to what we call a neutral bank account, where there are no debit orders.
Why is debt review better than a debt consolidation loan?
Debt consolidation loan replaces many small debts with one larger debt with still a high-interest rate.
With the Debt Review, your payments are still consolidated but the interest rate is drastically reduced. This means that your debt review payment is mainly applied to your outstanding balance and not so much to interest.
Debt review can offer legal protection for accounts in arrears.
How long till you start paying my debt?
As per National Credit Act guidelines debt counsellors and their legal teams must by law claim fees from your first and second payment. All the creditors know this and that 80% of the time they start receiving money from month 3. It all happens according to the National Credit Act guidelines.
Will I go to court?
No. We have specialised attorneys that are appointed to go on your behalf.
Does this mean I will be blacklisted?
Blacklisting happens when you fail to pay a credit provider and this is what we actually try to prevent. When you apply for debt review you do have a flag on your name that you are under review, but as soon as all the debt is finished being paid under debt review, you are eligible to get finance again…
What does it cost, what are the fees?
All the fees are inclusive of the restructured payment we have worked out for you. You do not pay anything extra than prescribed by the National Credit Act.
Here is a quick breakdown:
- An application fee of R300 as prescribed in terms of Schedule 2 (2) of the Act, recoverable from the first month’s instalment
- A restructuring fee equal to your first installment but not more than R8000 for a single application and 9000 for a joint application (excluding VAT)
- 100% of the fee is payable and comes from your first payment
- Should a Debt Counsellor fail to submit proposals to Credit Providers the Debt Counsellor has to refund 100% of the fee paid by the consumer (excluding the application fee)
- A monthly after-care fee of 5% (excluding VAT) of the monthly instalment of the debt rearrangement plan up to a maximum of R400 (excluding VAT), for the period of the debt review.
- Legal fees equal to your restructuring fee, but not more than R8000 for single app and 9000 for joint app will be paid out of your second payment as per the National Credit Act guidelines
- R50 credit report fee
What if I have an overdraft?
Is Debt Medic SA registered?
We are registered according to national credit act guidelines and our NCR number is NCRDC612 AND NCRDC 2142. You can search the NCR website here by typing in NCRDC612 or NCRDC2142, and you will find that our debt counsellors are registered.
Please note that the company names might not match as these Licenses were not updated by the NCR as yet. The most important is to Check that the Debt Counselor is active and registered.
Can I pay my debt off quicker?
Yes. We suggest that any bonuses or extra income that you receive to be paid to the accredited payment distribution agency so the extra funds can be distributed evenly.