No way out of debt maze | Fin24
  • Solly Moeng

    Give business owners a reason to stay in South Africa.

  • Pravin Gordhan

    The minister says SA is paying more for electricity because of theft at Medupi and Kusile.

  • Keep Flying the Flag

    The ANC says the state must keep a 'restructured' SAA as a national airline.


No way out of debt maze

Oct 24 2013 15:02
A Fin24 user feels like he is going to be under debt review for the rest of his life. He writes:

I have been under debt review since 2009. Originally the amount I handed over was R120 000. My balances now are R100 000.

How is this possible after four (nearly five) years?  What can I do?

I feel like I am going to be under debt review for the rest of my life!

Renee Marais, an independent debt counsellor in Pretoria (NCRDC1780), responds:

When a consumer applies for debt review, the debt is restructured by lowering the amount payable per month (instalment) over a longer period of time; the debt counsellor should also investigate reckless credit and negotiate for lower interest. 

Also when the interest rate is not adjusted downwards, the 103(5) variation of the in duplum rule must be implemented.

In short, this does not allow for costs and interest to accrue for more than double the outstanding balance at the time of the consumer's debt review application. 

The process starts with a notice to creditors, who then provide a current outstanding balance that is used by the debt counsellor to make a repayment recommendation. With acceptance from the consumer and creditors within 60 working days, the matter must be referred to a magistrate's court for a court order.

Debt counsellors must also do a reassessment each year for consumers as their circumstances may have changed, and adjust the proposed repayment schedule accordingly. 

If you make use of a debt counsellor who has not done any of these things, please lodge a complaint on form 29 found on the NCR website

Furthermore, if you made use of a payment distribution agent, insist that the debt counsellor provide you with all the proof of payments and ensure that this reflects on your statements.

If the payment agent is not able to provide you with this information, also lay a complaint with the NCR against them on form 29.  

If the NCR does not resolve your complaint properly within a decent timeframe, the matter can be referred to the National Tribunal for investigation.  

You can also contact a different debt counsellor to review your debt review situation and make recommendations on the way forward. 

You can find other debt counsellors on the DCI website, or on the NCR website.

 - Fin24

Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

Disclaimer: Fin24 cannot be held liable for any investment decisions made based on the advice given by independent financial service providers.

Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.


money clinic  |  debt  |  debt review


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Voting Booth

How concerned are you about ransomware attacks?

Previous results · Suggest a vote