Q. What is the difference between debt review and debt counselling?
A. Debt review and debt counselling is the same thing. Basically, a Debt Counsellor will offer you Debt Counselling and place you under Debt Review.
Q. Will I be able to rent property if I am under debt review or sequestrated?
A. Yes you will, but some agencies will not approve you for a rental property as they have strict application processes. It is important to be open and honest from the get-go. Your Debt Counsellor can also provide you with a letter confirming that you are under debt review and that your payments are up to date.
Q. Will I be able to find new employment if I am under debt review or sequestrated?
A. Yes you will, but again some agencies will not assist you but these will be more restricted to companies in the financial industry. It is important to know that many financial companies have staff members who are under financial pressure and do not object to their staff members being under debt review. If you are FAIS accredited, you will not be able to sequestrate your estate however debt review is a safe option to avoid judgements as these will also be detrimental to those who are FAIS accredited.
Q. Is my credit report damaged if I am under debt review?
A. When you are placed under debt review a marker is placed with the bureaus. When you exit debt review this marker is removed. Remember, if you have been listed as a later payer or with defaults against your name, it will not clear up until 2 years after the date that the listing was done.
Q. Is my credit report damaged if I sequestrate my estate?
A. Yes it is. You will not be able to rehabilitate yourself until 4 years after sequestration. Once you have rehabilitated yourself, your credit report will be clear.
Q. Is debt review the same as administration?
A. Debt review is not the same as administration. With administration your administrator receives your income and then deducts your living expenses and pays the difference to your credit providers proportionately. Many administrators take more than the allowed fee of R1200.00 and there is a lot of room for fraud, as at times the administrators do not pay over the funds. With debt review your money is paid into a trust account with a Payment Distribution Agent, put in place by the National Credit Regulator (NCR) and the funds are distributed accordingly. The largest portion of your monthly payment is paid to your credit providers. This allows you to re-enter the market with dignity.