Debt Counselling | Debt Review | FAQ's

Frequently Asked Questions

At No More Debt we believe that knowledge is power and in the Debt Counselling / Debt Review processes it ultimately benefits you to become informed. Here we have answered your most frequently asked questions with honesty and clarity.

No More Debt has a reputation for being one of the best and we are known for negotiating the best possible fees and interest rates for our clients.

a) If your monthly income can no longer get you through an entire month and you are in danger of falling behind on your repayments to your creditors.

b) If you don’t have any money left after your creditors have been paid for school fees, transport, groceries, etc.

c) If you are considering cancelling or have already cancelled insurance policies and/or your medical aid in order to make ends meet.

d) If your financial situation gives you sleepless nights and is causing issues in your relationship.

a) You will get the best and most honest advice from our consultants on which process will be ideal for your situation.
b) You will receive protection under the National Credit Act.
c) Your Debt Counsellor negotiates a repayment plan for you with you creditors with lowered interest rates on most of the outstanding accounts.
d) You will pay one consolidated and structured amount, which will be distributed amongst the creditors.
e) You will receive a Court Order to guarantee your repayment plan and period whilst you are paying your instalments regularly as required.

Under Debt Counselling you will received a lowered interest rate with most of the creditors whereas with a Debt Consolidation Loan you may not.

a) You will experience relief from the very first monthly instalment.

b) You will receive a Form 16 from the day you are registered on our system, which will include your new, easy-to-understand budget and monthly instalment.

c) Unless judgement was already taken against you, you are protected under the law from the day you are registered on our system.

d) During the first 60 days your repayment plan will be finalised with your creditors.

e) You will be paying a single instalment as negotiated by us and your creditors until all your debt has been paid off.

a) Not at all, the whole process can be finalised via telephone calls and e-mail correspondence so we can consult with you no matter where you live in South Africa.

b) It is, however, extremely important that we receive all the signed documentation as required by law from you in order for us to continue with your application.

a)Unsecured debt is paid off over a period of 60 months, i.e. R120 000.00 / 60 months = R2 000.00 (excluding administration fees).

b) Vehicle instalment @ R70%, i.e. R3 500.00 @ 70% = R2 450-00 (excluding insurance).

c) Bond instalment @ 80%, i.e. R5 600.00 @ 80% = R4 480-00 (excluding insurance).

a) As soon as the creditors received your 17.1 ad 17.2 forms (the official documentation from a Debt Counsellor to a creditor to record that the consumer is under Debt Counsel) they must, by law, communicate with the Debt Counsellor and not with you. However, the debt review department does not always inform the collections department that the consumer is under Debt Review.

b) Should any creditor still contact you for payment, they must be told to contact No More Debt – we will communicate with them.

a) Creditors want their money and so it is very unlikely that they will not accept your Debt Review.

b) If legal action has been taken against you, it is more difficult to get acceptance from creditors but No More Debt does have an excellent success record when it comes to dealing directly with the attorneys.

c) If No More Debt feels that a creditor is being unreasonable with the instalment and/or interest rate, we then endeavour to take the application through court, which includes the proposal as set out by No More Debt. However, this is not always the best route to take since a creditor then has the opportunity to oppose and terminate. No More Debt always endeavours to get acceptances from all creditors before the court date.

a) You will always get straightforward and honest answers from No More Debt’s consultants. If we believe that Debt Counselling is not the ideal solution for your specific circumstances, we will discuss the possibility of sequestration with you.

b) If we are not able to assist you with either Debt Counselling or Sequestration we will be honest and tell you this. We’ll then give you advice as to what would be the best route for you.

a) Our consultation (personal and/or telephonically) is free.
b) A Debt Counsellor’s fee is regulated by the National Credit Regulator and is set out as follows:

• A restructuring fee equal to the first instalment of the debt re-arrangement plan but to a maximum of R6 000.00 (excluding VAT), in respect of a consumer whose applications have been accepted in terms of 86(7) (b) or 86(7) (c).
• 100% of the fee is payable at the first instalment.
• A legal fee for a Court Order of an amount equal to the second instalment of the debt re-arrangement plan minus the DC aftercare fee and PDA fee but to a maximum of R8 000.00 (excluding VAT).
• A monthly aftercare fee of 5% (excluding VAT) of the monthly instalment of the debt re-arrangement plan up to a maximum of R400.00 (excluding VAT), for the remaining period of the debt re-arrangement plan.
• A monthly PDA (Payment Distribution Agency) of 3% (plus VAT) of the monthly instalment, to a minimum of R57.00 and to a maximum of R570.00 (plus VAT), for the remaining period of the debt re-arrangement plan.
• Should the consumer withdraw from the process before completion, a fee equal to 75% of the restructuring fee is payable by the consumer.

a) Basically, if No More Debt clients pay off all their unsecured debt and are left with only a bond repayment and can afford the original contractual installments, then the client can voluntarily withdraw from Debt Review, in which case the ‘debt review’ flag will be cleared from the client’s profile.

b) Once resuming to normal home loan repayments, clients are responsible for keeping their debt repayments up-to-date. At this point No More Debt will no longer be able to assist you. Our debt counselor will advise you to be 100% sure you can afford to pay off your bond on your own. You also need to ensure us that you will do everything in your power to keep your financial situation in good standing.

a) Once all your debt has been paid off and No More Debt issues a Clearance Certificate to your creditors, you are free to borrow credit again, which means you can buy a home or a car. It is important to note that you should check to be sure that your name has been cleared on the credit bureaus.

b) A word of caution: Do make sure that once you have completed debt counselling and resolved your financial situation you do not rush into taking on more debt. Some people find the process of coming out of debt counselling slightly daunting as they are nervous of getting back into debt, whereas other people rush straight back into the credit process.

c) No More Debt can also buy you another vehicle at any time, refer to our vehicle product.