Get free government debt counselling services to manage your financial burdens. Expert guidance, legal protection, and peace of mind. Choose wisely and avoid scams.

The National Debt Review Center

Dealing with overwhelming debt can be incredibly stressful, affecting not only your financial well-being but also your overall quality of life. Fortunately, the South African government provides essential services to assist individuals struggling with debt. In this article, we’ll explore the concept of debt relief, specifically focusing on debt rearrangement and the debt review process. Let’s dive in!

KEY TAKEAWAYS

1. This article highlights the availability of free government debt counselling services. These services are designed to assist individuals who are struggling with debt and financial challenges. By seeking debt counselling, individuals can receive professional guidance on managing their debts effectively.
2. Secondly, it also emphasizes the importance of considering the National Debt Review Center.
3. Lastly, warns you against falling victim to scams related to debt relief.

Free Government Debt Counselling Services aka Free Government Credit Counselling Services

1. Debt Rearrangement – The National Credit Amendment Act

Debt intervention is a critical measure introduced by the National Credit Amendment Act to provide relief to over-indebted consumers. Let’s explore its nuances and understand how it impacts those facing financial stress.

What is the Purpose and Context of The National Credit Amendment Act

• The Debt Intervention Bill aims to assist debtors who are otherwise excluded from existing debt relief measures.
• Vulnerable groups, including low-income earners, often struggle to service their debt repayments regularly.
• Debt intervention seeks to alleviate their burden and offer a path toward financial stability.

Key Aspects of Debt Intervention

1. Debt Restructuring

• Debt intervention allows for the restructuring or re-arrangement of a consumer’s debt over a maximum period of five years.
• If you’re earning R7500 per month or less, debt intervention can help you manage your debt while covering essential living expenses.

2. Application Process

• Consumers can apply for debt intervention through the National Credit Regulator (NCR).
• The NCR assesses the case and informs creditors and credit bureaus about the application.
• A thorough financial assessment determines whether you qualify for debt intervention.

3. Beware of Scams

• Be cautious of online scams promising debt write-offs.
• Verify information with the NCR before making any payments or agreements.
• Registered debt counsellors provide legitimate assistance without the need for intermediaries or agent fees.

4. Implementation Status

• The Act has been signed into law, promulgated by the President and in effect. contact The National Credit Regulator on 0860627627 for more information.

Practical Steps to be followed when looking for free government debt counselling services.

• If you’re struggling with debt, consider reaching out to the NDRC directly.
• Visit the NCR’s website or contact them for assistance regarding debt intervention.
• Remember, if it sounds too good to be true, verify the information and stay vigilant.

2. Debt Review can be a Lifeline for Over-Indebted Consumers

Debt review, also known as debt counselling, is a crucial process available under the National Credit Act. Here’s how it works:

1. Debt review aims to assist over-indebted consumers by providing budget advice, negotiating with credit providers, and restructuring debt.
2. During debt review, you pay reduced monthly installments based on your affordability.
3. Credit providers may agree to lower interest rates, making repayment more manageable.
4. The debt review process is governed by Section 86 of the National Credit Act.
5. Anyone over 18 and have a source of income, struggling with debt can apply for debt review.
6. If you’re no longer over-indebted, you can cancel debt review and maintain regular debt repayments.

Book your appointment with The National Debt Review Center below.

Why The National Debt Review Center

The National Debt Review Center (NDRC) is a reputable debt counseling firm based in Port Elizabeth, South Africa. Here’s why they stand out:

• Registered Professionals: NDRC’s debt counselors are registered with the National Credit Regulator (NCR) and adhere to industry standards.
• Services Offered:
  • Debt Counselling: NDRC provides expert guidance, budget advice, and debt restructuring.
  • Debt Review Removal: If you’re no longer over-indebted, NDRC assists in removing debt review status.
  • Debt Management: NDRC helps you regain control of your finances.
• Debt Review Clearance Certificate: Once debt review is complete, you receive a certificate confirming your debt-free status.
• Free Consultations: Contact NDRC for a free consultation and personalized assistance.

NDRC Reviews

Short Summary of the National Credit Amendment Act regarding Debt Intervention

• The National Credit Amendment Act was signed into law in August 2019 but the commencement date is not yet set.
• This Act will help low-income consumers by allowing them to re-arrange, suspend or extinguish their unsecured credit debt.
• It applies to existing credit agreements and offers an alternative to administration orders or debt review for low-income consumers.
• The Act also tightens enforcement provisions to protect consumers from unscrupulous lenders and requires mandatory credit life insurance on certain loans.
• Critics are concerned the Act may limit credit access for low-income consumers, create unrealistic expectations of debt forgiveness, and burden the National Credit Regulator.
• The Act defines who qualifies for debt intervention based on income, debt amount, and other factors.
• The process involves applying to the Regulator, potentially suspending payments for 12-24 months, and completing a financial literacy program.
• Debt may be partially or fully extinguished after 16 months, and consumers cannot apply for new credit for 12 months after the Tribunal’s order.
• Providing false information or manipulating finances is an offence under the Act. The Minister can also adjust the income and debt thresholds.

On June the NCR issued the following Warning Regarding Debt Intervention.

The National Credit Regulator warns against false information on the National Credit Amendment Act relating to “Debt Intervention”.

Frequently Asked Questions

What is debt intervention?

• Debt intervention is a measure aimed at providing debt relief for individuals who are over-indebted and struggling to manage their financial obligations.
• It allows for the restructuring of debts and helps debt-stressed consumers cover living expenses while servicing their debt.

What is the debt intervention bill South Africa?

• Informally known as the “debt relief bill,” this legislation was signed into law by President Cyril Ramaphosa in 2019.
• It allows certain applicants to suspend their debt (partially or fully) for up to 24 months.
• If the applicant’s financial circumstances do not improve, the debt may be extinguished altogether.
• Criteria for debt write-off include:
  • Unsecured debt not exceeding R50,000.
  • Debt accrued through unsecured credit agreements or facilities.
  • Earnings of no more than R7,500 per month over the last six months.

What is the new debt law in South Africa?

• The National Credit Amendment Act (commonly referred to as the debt relief bill) is the recent significant debt-related legislation.
• It aims to provide relief to over-indebted South Africans who have no other means of escaping their financial burden.

What is debt relief South Africa?

• Debt rescheduling: Adjusting loan terms to reduce monthly payments.
• Debt review: Restructuring debt repayments based on affordability.
• Debt intervention is a critical measure introduced by the National Credit Amendment Act to provide relief to over-indebted consumers.

Can a debt collector take you to court in South Africa?

Indeed, debt collectors may initiate legal proceedings against debtors based on directives from the creditor who assigned the debt to them.