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Frequently Asked Questions
Is Debt Counselling a legal process?
Yes. Debt Counselling was introduced by the National Credit Act (NCA), which came into force on 1 June 2007. The Act makes provision for legal protection for consumers who apply for Debt Review. A Magistrate’s Court Order concludes the Debt Restructuring process. 2nd Chance Debt Counsellors has been registered with the National Credit Regulator (NCR), in terms of the NCA.

I can’t pay the full instalments on all my accounts every month. How will Debt Counselling give me relief?
From the first month, you could enjoy lower instalments on your accounts, depending on what you have available after your living expenses are taken into consideration. We’ll negotiate with your creditors, giving you that much needed break from the stress. Your creditors cannot take legal action against you or repossess your assets for at least 60 business days, once you have applied for Debt Review.

I can’t afford to pay my bills. How can I afford Debt Counselling?
Except for a once-off R50 application fee, you do not need to add additional amounts to your budget for Debt Counselling. Once you start paying your Restructured repayments to a Payment Distribution Agency (PDA), which has been approved by the National Credit Regulator (NCR), the PDA will pay the Debt Counsellor’s fee from the first month’s instalment.

Can anyone place me under Debt Review?
No. Only Debt Counsellors, who have met the criteria, stipulated in the Act and the Regulations, and who have been registered by the NCR, may conduct Debt Review.

How do I know that the Debt Counsellor will not take my money and “disappear” with it?
You do not pay your monthly instalments to the Debt Counsellor. Your total monthly repayment is made to a Payment Distribution Agency (PDA), which has been approved by the NCR.

Will creditors still put me under pressure, if I am under Debt Review?
You no longer need to negotiate with your creditors. 2nd Chance Debt Counsellors will do this on your behalf and we shall inform all of your creditors that you have applied for Debt Review. They need to liaise with us in terms of providing information and negotiating. We’ll, in turn, keep you informed of the progress. If a creditor contacts you directly in connection with your account, you merely need refer them to us.

Can I apply for credit, whilst I am under Debt Review?
No, you may not. We will however, assist you in compiling a budget, which will make provision for your monthly living expenses. This should ensure that you have cash available for the short term items, like food and clothing, thereby eliminating the need for credit.