Frequently Asked Questions

Why use a debt counsellor?
Debt Counsellors were formally introduced by the National Credit Act (NCA) to help consumers who are having trouble with their debt. Zululand Debt Counsellors will negotiate with your credit providers on your behalf and design a manageable debt repayment plan that you can afford, so that you can take control of your finances and your future. The main purpose of the act is therefore to help you, the consumer.  Make use of it.


How long does it take for my situation to improve?
Immediately. You will benefit from a realistic budget which will allow your creditors to be paid at a rate which is affordable to you.


Do I have to attend an interview?
We can organize everything over the phone, via email or fax.


We are married in community of property. Does my partner need to apply?
Yes if married in community of property you are one estate and therefore both of you have to apply as a joint application.


Can I apply if I am unemployed?
No, this is not possible. However if you are married in community of property and your partner works, then you will qualify as a joint application. It is however essential that you get employment as quickly as possible.


Will my employer and work colleagues find out?
No. We never contact clients at work unless asked to do so.


Can you rescind my admin order to join Debt Review?
Yes. We can rescind your admin order to join Debt Review.


What are the differences between an admin order and debt review?
Debt Review:
1. With Debt Review the debt amount is unlimited.
2. Debt Review prevent repossession of the consumer’s vehicles, houses and other assets by Credit Providers.
3. With Debt Review the Credit Providers’ are paid on a monthly basis through a Government appointed Payment Distribution Agency (PDA) via one debit order payment.
Admin Order:

1. The maximum Debt amount with an admin order is limited to R50 000.00 and vehicles and properties are usually excluded. 2. An admin order does not prevent repossession of consumer’s vehicles, houses and other assets by Credit Providers.
3. With admin orders the Credit Providers are paid by the administrator and not by a Government approved payment agency.


What is over-indebtedness?
According to the National Credit Act, you are over-indebted when you are unable to satisfy in a timely manner all your obligations under all your credit agreements.


What are the main Causes of over-indebtedness?

  • The general availability of credit (Retail stores, banks send credit cards, RCS, etc.)
  • Increase of cost of credit (credit providers charge exorbitant interest)
  • Reckless lending (banks give credit to people who couldn’t afford it)
  • Inflation (salary increases don’t always keep up with cost of living.)
  • Emergencies (illness, funerals, divorce, etc.)
  • Failure to budget
  • Lack of financial discipline


How does over-indebtedness affect our lives?

  • debt puts an increasing amount of pressure on marriages
  • children suffer as a result of deteriorating family relationships caused by debt


Will my details be sent to the Credit Bureaus and my credit providers?
All credit bureaus and credit providers will be notified that you have applied.


Can you cover all my debts?
We will include home loans, vehicle finance, credit cards, overdrafts, store cards, personal loans and micro-loans. We will then look at your monthly income and expenses and make a recommendation on the amount you can afford to pay each month.


How much will I have to pay to the credit providers each month?
The monthly payments should be as much as you can reasonably afford after you have accounted for your basic living costs and those of your dependents. A Debt Counsellor will go through your budget and advise how much you have available to pay your credit providers.


What happens if I miss my monthly repayments?
If you miss a monthly payment the credit providers will terminate the debt review and start legal proceedings which will include judgments’ and garnishee orders. If you are struggling to make your monthly repayment contact Zululand Debt Counsellors immediately so that we can advise the credit providers of your situation and work out a more affordable debt repayment plan


If a credit provider tries to make a new arrangement directly with me?
Never make any promises to a Credit Provider without first discussing with us.


Can the credit providers change their mind after the debt plan has been agreed?
No. As long as you maintain your payment each month to the credit providers, they are not able to take further action.


What if I already have judgments against me?
You can still contact us. Just please ensure we know your complete situation and don’t leave anything out. It is essential that we know the full situation from the start, as this can have serious repercussions with the credit providers.


Can I apply for more credit or use my credit cards while under debt review?
No. Credit providers will terminate your debt review and start legal proceedings.

If you don’t find your answers here, please don’t hesitate to contact us here for anything regarding debt.

Scroll to top