How is debt review associated with the National Credit Act (NCA)? The process of debt review has been part of the NCA since 2007. South Africans overwhelmed by debt and seeking relief can enrol in debt counselling with One Debt Counsellors and win immunity from legal action while paying off their debts.
6 Benefits for the Debtor
- Debtors enjoy legal protection from their creditors only if they uphold debt review rules.
- Creditors cannot make debt collection phone calls or send threatening letters to the debtor.
- A creditor cannot garnish the debtors wages.
- The debt counsellor will tell all credit bureaus the debtor is under debt review counselling. A credit report showing debt counselling is positive because, unlike blacklisting, it shows the intent to pay debts.
- Once the debt is paid, the credit bureau will remove the debt-counselling label.
- The debtor has this one opportunity to become debt free and learn to live within their income.
Debtors Must Qualify For NCA Protection
NCA Protection through Debt Review Counselling is only available once to a candidate.? If the debtor has joined before they will not qualify for a second time. ?The debtor must have a regular income that is sufficient for regular debt repayment. NCA Protection only applies if the debtor sees the programmw through to the end.
How to Know if You Qualify for NCA Protection
The first step is to consult with one of our debt review counsellors at One Debt. Your counsellor will work the numbers to be sure your income is enough to cover your living expenses and pay towards eliminating your debt each month.
If your income to outgo ratio is workable, then your counsellor will inform you of the fees associated with taking part in the scheme. There are costs if you fail to follow through.
Your debt review counsellor will contact your creditors, secure agreements with each of them to a set payment each month. Most will be agreeable but occasionally One Debt has to involve a Magistrate to reach an agreement with a creditor.
All the credit bureaus are notified of your enrolment in the NCA protection programme.
When agreement is reached with all involved, you will receive your repayment schedule and all that is needed for you to qualify for the repayment programme is to agree to the terms. A payment distribution agency will divide your monthly payment among your debtors until the last one is paid in full.
One Debt Counselling has aided many South Africans who qualify for the NCA protection programme. Their clients have paid off the overwhelming debt that threatened their financial security and the well-being of their family. Call One Debt Counselling on 021 811 3328 for debt review protection under the National Credit Act.