Is debt review a good idea?

Debt can be a heavy burden to carry, impacting your finances, credit score, and overall well-being. If you're feeling overwhelmed by debt, you might be considering debt review as a potential solution. But is debt review a good idea?

Debt review, also known as debt counseling, is a formal debt-restructuring process designed to help individuals manage their debt more effectively. It involves working with a debt counselor to create a structured repayment plan that is more manageable based on your income and expenses.

One of the key benefits of debt review is that it offers legal protection from creditors, meaning they cannot take legal action against you while you are under debt review. Additionally, debt review can provide a sense of relief and reduce the stress associated with managing multiple debts.

However, it's important to weigh the pros and cons before committing to debt review. While it can provide immediate relief, debt review may have long-term implications on your credit score and access to credit. It's also crucial to ensure that you work with a reputable and accredited debt counselor to avoid potential pitfalls.

In conclusion, debt review can be a helpful option for those struggling with unmanageable debt, providing a structured approach to repayment and legal protection from creditors. However, it's essential to carefully consider the long-term impact and seek guidance from financial experts before making a decision.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.

Understanding Prescription Laws in South Africa

Prescription laws in South Africa are of great importance to both creditors and debtors. It is essential for consumers to be aware of their rights and obligations when it comes to debts, especially with regard to the Prescription Act, Act 68 of 1969.

Prescription refers to the extinguishment of a debt after a certain period of time has elapsed. The time periods for prescription vary depending on the type of debt. For example, mortgage bonds, judgment debts, debts owed to the State, and taxation-imposed debts prescribe after 30 years, while other debts prescribe after 3, 6, or 15 years, as outlined in the Act.

It is crucial to understand when prescription commences. According to Section 12 of the Act, prescription begins once the debt is due. Furthermore, the Act provides for the interruption of prescription, such as in cases where liability has been acknowledged or when judicial interruption occurs through the serving of a summons on a debtor for the debt owed.

The National Credit Amendment Act, which came into operation in March 2015, introduced significant changes, particularly Section 126B(1)(b) of the National Credit Act 34 of 2006 (“the NCA”). This section prohibits the collection or reactivation of a debt under a credit agreement to which the NCA applies, once the debt has been extinguished by prescription under the Prescription Act 1969. This provision also bars the collection of such debts when the consumer raises the defense of prescription in response to a demand.

It is important to note that Section 126B(1)(b) does not apply retrospectively to NCA credit agreements. This means that debts that have already been extinguished by prescription cannot be retrospectively collected upon under the NCA.

For a comprehensive understanding of these laws and their application, individuals are encouraged to refer to the full Prescription Act, as well as the relevant case law, which is available in the library section of the website.

In conclusion, consumers should be well-informed about prescription laws in South Africa to protect their rights and understand their responsibilities regarding debt. With the various provisions and regulations in place, it is essential to stay updated and seek legal advice when necessary.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.

What You Need to Know About Debt Review

Debt review is a method designed to assist consumers who are struggling to manage their debts. It is a formal and closely monitored process, intended to provide relief to individuals who find themselves in over their heads when it comes to debt obligations.

Here are some key points to consider about debt review:

1. Eligibility: Not everyone is eligible for debt review. Typically, individuals who are struggling with multiple debts that they are unable to pay may qualify for debt review. However, it’s important to note that certain debts, such as secured loans, are not included in the debt review process.

2. Protection from Creditors: One of the primary benefits of debt review is that it provides protection from creditors. Once the debt review process begins, creditors are legally prohibited from taking further action against the debtor, such as repossessing assets or taking legal action.

3. Debt Counsellor: In order to undergo debt review, individuals must work with a registered debt counsellor. The debt counsellor will assess the individual's financial situation and work with creditors to restructure the debt repayment plan.

4. Payment Plan: During the debt review process, a revised payment plan will be proposed to creditors. This plan takes into account the individual's financial circumstances, and aims to make debt repayment more manageable.

5. Credit Record: While under debt review, individuals will have a flag on their credit record indicating that they are undergoing the process. This flag will remain until all debts under review have been settled. This may impact the individual's ability to access further credit during this time.

6. Completion and Rehabilitation: Once all debts included in the debt review have been settled, the individual will receive a clearance certificate, indicating that they have successfully completed the process. Their credit record will be updated accordingly.

It’s important to note that debt review is a serious financial decision and should be carefully considered. While it can provide much-needed relief to individuals struggling with debt, it is not a quick or easy fix. Individuals considering debt review should seek advice from a qualified financial professional to fully understand the implications and requirements of the process.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic. 

Understanding the Legal Implications of Late Recordal in Instalment Sale Agreements

We recently came across a significant legal judgment that we believe is important to remember and understand. In the case of Amardien and Others vs Registrar of Deeds and Others (CCT212/17) [2018] ZACC 47, the Constitutional Court was tasked with addressing two critical issues related to the Alienation of Land Act (ALA) and the National Credit Act (NCA).

The first issue revolved around the legal implications of a late recordal of an instalment sale agreement with the Registrar of Deeds, as outlined in Sections 20 and 26 of the ALA. The second issue focused on the requirement for a notice, as per Section 129(1) of the NCA, to indicate the alleged amount owed by a debtor.

The case stemmed from a housing initiative in Cape Town aimed at providing government-subsidized housing to deserving individuals. The applicants in this case had entered into instalment sale agreements facilitated by the housing company. However, they later discovered that the quality of the homes was inferior, leading to irregular payment of instalments.

The housing company subsequently sent notices to the applicants concerning their arrears and the threat of agreement cancellation. However, it was revealed that the housing company had failed to record the instalment sale agreements with the Registrar of Deeds in a timely manner. The applicants were only made aware of the recordal of the agreements when they received the Section 129 notices.

In its ruling, the Court emphasized that the housing company was obligated to record the agreements within a specified time frame, and its failure to do so had legal consequences. The premature and invalid nature of the Section 129 notices was highlighted, as the housing company had not fulfilled its obligation to inform the applicants of the recordal of the agreements before issuing the notices and claiming cancellation.

This case serves as an important reminder of the legal responsibilities and obligations of parties involved in instalment sale agreements, particularly with regard to timely recordal and communication of essential information to the other party. It also underscores the Court's commitment to upholding the principles of fairness and legal compliance within the framework of the relevant legislation.

It's crucial for individuals and entities engaging in similar agreements to be fully aware of their rights and obligations under the law, and to seek legal guidance when navigating complex situations such as those addressed in this case.

If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic. 

How fast can I get out of debt review?

 Are you feeling overwhelmed by the debt review process and wondering how long it will take to get out of it? Exiting debt review can be a daunting process, but with the right steps and guidance, it is possible to achieve financial freedom.

Here's how to get out of debt review as quickly as possible:

1. Understand the Process: Take the time to fully understand the debt review process. Know your rights and responsibilities, and familiarize yourself with the steps involved in exiting debt review.

2. Review Your Finances: Assess your current financial situation. Create a detailed budget and identify areas where you can cut back on expenses to free up more money to put towards paying off your debts.

3. Communicate with your debt counsellor: Reach out to your debt counsellor and discuss your intention to exit debt review. Explore the possibility of negotiating new repayment terms or settling your debts to expedite the process.

4. Seek Professional Advice: Consider seeking guidance from a financial advisor or debt counselor. They can provide personalized advice and support to help you navigate the debt review exit process.

5. Make Timely Payments: If possible, make timely payments on your existing debts. Consistently paying off your debts can demonstrate your commitment to financial responsibility and may help expedite the exit process.

6. Follow Legal Procedures: Ensure that you comply with all legal requirements for exiting debt review. This may involve obtaining a clearance certificate from a debt counselor or applying to the court for an order to rescind or set aside the debt review.

Remember, the timeframe for exiting debt review can vary depending on individual circumstances. It's essential to stay patient and persistent throughout the process. By taking proactive steps and seeking the necessary support, you can work towards successfully exiting debt review and regaining control of your financial future.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Understanding Arm's Length Transactions and Credit Agreements under the NCA

If you are planning to enter into a loan agreement with a friend or family member, it is essential to understand the definition of "arm's length" transactions and "credit agreements" under the National Credit Act (NCA). The recent ruling of the Supreme Court of Appeal (SCA) in a case involving an appeal on the issue of whether a loan and an acknowledgement of debt (AOD) were subject to the NCA provides valuable insights into these concepts.

The SCA identified two issues to be addressed in the case - whether the order granted by the trial court was appealable and whether the transaction constituted a credit agreement under the NCA. The SCA found that the loan and the AOD were not subject to the NCA as the parties were not dealing at arm's length and no interest was levied on the loan, except in case of mora. The loan was offered as a gesture of friendship, and thus the agreement lacked the character of a credit agreement.

The NCA defines a credit agreement as an agreement where a credit provider agrees to provide credit to a consumer, and the consumer agrees to pay interest, fees, and charges in return. A credit agreement is also deemed to exist if it defers payment, and any charge, fee, or interest is payable to the credit provider. In the case before the SCA, the loan was a one-time occurrence, and no interest was levied on it, indicating that it was not a credit agreement under the NCA.

The concept of arm's length transactions refers to a transaction between two parties who are independent, unrelated, and have no personal relationship. In such transactions, the parties negotiate on equal terms, and the transaction is conducted in a fair and transparent manner. The NCA requires credit agreements to be conducted at arm's length, which means that the parties should be dealing with each other on commercial terms, and there should be no personal relationship between them. In the case before the SCA, the loan was offered as a gesture of friendship, indicating that the parties were not dealing at arm's length.

The ruling of the SCA highlights the importance of understanding the concepts of arm's length transactions and credit agreements under the NCA. If you are planning to enter into a loan agreement with a friend or family member, it is crucial to ensure that the transaction is conducted at arm's length, and the agreement is not deemed to be a credit agreement under the NCA. This will help avoid any legal complications and ensure that the transaction is conducted in a fair and transparent manner.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice.

What are the disadvantages of Debt Review?

Debt review is a process that is designed to help individuals who are struggling with debt. It is a formal process that involves the assessment of an individual's financial situation and the development of a repayment plan that is affordable. While debt review can be an effective way to regain control of your finances, it is important to understand the disadvantages of debt review before making the decision to enter the process.

1. Negative Impact on Credit Score

One of the most significant disadvantages of debt review is the negative impact it can have on your credit score. When you enter debt review, a notice will be placed on your credit record, indicating that you are under debt review. This notice will remain on your record for the duration of the debt review process, which can be up to five years. This can make it difficult to obtain credit during this time, and can also impact your ability to secure a job or rental property.

2. Limited Access to Credit

During the debt review process, you will be required to adhere to a strict budget, which means that you may not have access to credit. This can make it difficult to make large purchases, such as buying a car or a home. While this can be beneficial in preventing you from taking on additional debt, it can also be a disadvantage if you need access to credit for emergencies.

3. Long-Term Commitment

Debt review is not a quick fix for debt problems. It is a long-term commitment that can take up to five years to complete. During this time, you will be required to make regular payments towards your debt, which can be challenging if your financial situation changes. Additionally, if you fail to adhere to the terms of your debt review plan, your creditors may seek legal action against you.

4. Limited Control over Finances

When you enter debt review, you will be required to adhere to a strict budget, which means that you will have limited control over your finances. This can be challenging if unexpected expenses arise or if your income changes. Additionally, if you have joint debt with a partner, both parties will need to enter debt review, which can be difficult if one party is not willing to do so.

In conclusion, debt review can be an effective way to regain control of your finances, but it is important to understand the disadvantages before making the decision to enter the process. If you are considering debt review, it is recommended that you speak to a financial advisor or debt counsellor to discuss your options and determine if it is the right choice for you.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Understanding the Obligations of Credit Providers in South Africa

As a consumer, it's important to be aware of your rights and the responsibilities of credit providers when entering into a credit agreement. The National Credit Act (NCA) regulates credit agreements in South Africa and sets out obligations for both consumers and credit providers.

A recent case, Capitec Bank Limited v Mahlangu, provides guidance on a credit provider's obligation pursuant to section 81 of the NCA to assess a consumer's ability to afford credit, as well as clarification on the application of a credit provider's defence in section 81(4).

In this case, the magistrate found that the credit agreement between Capitec and Mr Mahlangu was reckless in terms of section 81 of the NCA. Capitec applied to the Mpumalanga Division of the High Court for an order setting aside the decision of the magistrate.

The court held that where a consumer discloses a source of household income as part of its affordability assessment, a credit provider should include in its calculation an assessment of the household income. In particular, there should be an inquiry into proof of the household income, the relation between the consumer and the contributor of the household income, and the household’s living expenses which would be impacted by the household income.

It is not enough for a credit provider to rely on a consumer's individual stated income if a consumer has indicated that there is household income. This means that credit providers need to take into account the financial means of the entire household, not just the individual applying for credit.

Regarding the application of section 81(4) of the NCA, the court held that, for a credit provider to be able to rely on this defence, there has to be a finding that the consumer failed to answer questions fully or truthfully. Without that, the defence does not arise. The section 81(4) defence does not extinguish a credit provider's obligation to assess a consumer's financial means.

In the case of Capitec Bank Limited v Mahlangu, Capitec argued that it had used the client-level calculation rather than the house-level calculation when deciding to grant credit to Mr Mahlangu. In light of this, it contended that it was not necessary to obtain any proof of household income because the credit was approved based on the individual-level and not the household-level.

However, the court found that Capitec was obliged to do a household income assessment in calculating Mr. Mahlangu's ability to afford the loan, as Mr. Mahlangu had qualified for the loan based on an assessment of his own individual income.

This case highlights the importance of credit providers properly assessing a consumer's ability to afford credit and taking into account the financial means of the entire household. It also clarifies that credit providers cannot rely on a consumer's failure to fully or truthfully answer questions as a defence for reckless lending.

As a consumer, it's important to provide accurate and truthful information when applying for credit, and to ensure that credit providers are also adhering to their obligations under the NCA.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Understanding the Red Flag on Debt Review

If you've ever been on a debt review, you may have come across the term "red flag." But what does it signify? In the world of debt reviews, a red flag typically indicates a serious issue that requires immediate attention. It could be a missed payment, a significant increase in debt, or any other financial concern that needs to be addressed promptly.

If you're currently undergoing a debt review, it's crucial to understand the significance of a "red flag." In the context of debt reviews, a red flag serves as a warning sign, indicating a serious financial issue that demands immediate attention. This could include missed payments, a substantial increase in debt, or any other pressing financial concern that needs to be dealt with promptly. 

When you encounter a red flag on your debt review, it's imperative to take swift action. Ignoring it could exacerbate your financial troubles and have a detrimental impact on your credit score. It's important to promptly engage with your debt counselor or financial advisor to comprehend the specific issue and devise a plan to address it.

It's essential to recognize that a red flag doesn't signify the end of the road. Instead, it serves as a signal to reassess your financial situation and take proactive steps to improve it. By staying informed and promptly addressing red flags, you can navigate your debt review more effectively and work towards a healthier financial future.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Just wanted to remind you that it's best not to pay prescribed debt. Let's chat about the consequences and explore some alternatives together, shall we?

Are you struggling with prescribed debt? Don't worry, you're not alone. Prescribed debt is a term used to describe a debt that is no longer legally enforceable due to the passage of time. While it may seem like a relief to be free from the legal obligation to repay this debt, there are still consequences to consider before making the decision not to pay

It's important to understand the potential impact on your credit score, the potential for legal action, and the ongoing harassment from debt collectors. But don't worry, there are alternatives to consider before making the decision not to pay.

One alternative is to negotiate a settlement with the creditor or debt collector. This can involve paying a portion of the debt in exchange for the creditor agreeing to stop legal action and reporting the debt as settled to the credit bureaus. Another alternative is to work with a debt management program. These organizations can help you create a budget and develop a plan to pay off your debts. They can also negotiate with creditors on your behalf to reduce interest rates and monthly payments. Finally, you may want to consider filing for bankruptcy as a way to discharge prescribed debt. While this can have a significant impact on your credit score, it can also provide a fresh start and relief from the burden of overwhelming debt.

Before the amendments of the National Credit Act, it was common for consumers to be chased for prescribed debt. However, the NCA amendments that came into effect in March 2015 declared the collection of prescribed debt to be illegal. So, if you are contacted for old debt, take down the details of who is calling and which company they represent. If your debt is prescribed, you need to report them to the NCR on 0860 627 627.

Remember, it's important to take control of your financial situation. You're not alone, and there are options available to help you manage your prescribed debt.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.

Understanding Debt Counselling: Who Can Apply?

Are you struggling to keep up with your monthly debt obligations? Do you find yourself constantly worrying about how to pay off your debts? If yes, then debt counselling might be a suitable option for you.

Debt counselling is a process that helps consumers who are struggling with debt to find a way out. It is a legal process that is regulated by the National Credit Regulator (NCR) in South Africa. Debt counselling is designed to help consumers manage their debt in a way that is affordable and sustainable, so they can regain control of their finances.

Who can apply for debt counselling?

Consumers who are struggling to meet their monthly debt obligations qualify to apply for debt counselling. These consumers should have a distributable income, which will be used to offer reduced payments to their credit providers. The debt counsellor will assess your financial situation and determine whether you qualify for debt counselling.

If you are married in community of property, you must jointly apply for debt counselling. This means that both you and your spouse will have to participate in the debt counselling process. This is because both of you are responsible for the debt incurred during your marriage.

Debt counselling is an excellent option for consumers who are struggling with debt. If you find yourself in this situation, it is important to seek help as soon as possible. Debt counselling can help you regain control of your finances and live a debt-free life. Remember, there is always a way out of debt, and debt counselling is one of the ways to achieve financial freedom.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic. 

A Guide to Finding Legitimate Debt Counselling Services

Are you struggling with debt? Are you feeling overwhelmed and unsure of where to turn for help? If so, debt counselling may be a good option for you. However, it's important to ensure that you're working with a legitimate debt counsellor who can provide you with the support you need. Here's what you need to know:

1. Look for registered debt counsellors

Debt counselling services are offered by debt counsellors who are registered with the National Credit Regulator (NCR) in South Africa. Before becoming registered, debt counsellors must complete a debt counselling training course, meet prescribed education, experience, or competency requirements, and demonstrate their ability to manage their own finances.

To verify the registration of a debt counsellor, check their registration certificate, which should display the NCR logo, the debt counsellor's details, and registration number. Additionally, all registered debt counsellors should have a visible green window decal at their premises.

2. Check their qualifications

In addition to being registered with the NCR, it's important to ensure that the debt counsellor you're working with has the proper qualifications to provide you with the support you need. Look for a debt counsellor who has experience in your specific type of debt and who has a good track record of helping clients achieve financial stability.

3. Understand the fees

Debt counselling services are not free, so it's important to understand the fees associated with working with a debt counsellor. These fees may include an upfront assessment fee, a monthly aftercare fee, and a restructuring fee. Be sure to ask your debt counsellor about their fees upfront so you can make an informed decision about whether or not you can afford their services.

4. Know what to expect

Finally, it's important to have a clear understanding of what to expect from your debt counselling services. Your debt counsellor should provide you with a detailed debt repayment plan that outlines how much you'll need to pay each month, how long it will take to pay off your debts, and what your interest rates will be.

Additionally, your debt counsellor should provide you with ongoing support and guidance throughout your debt repayment journey. This may include financial education, debt management strategies, and budgeting advice.

In conclusion, working with a legitimate debt counsellor can be a great way to get your finances back on track. By following these tips, you can find a debt counsellor who can provide you with the support and guidance you need to achieve financial stability.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.

5 Signs You Could Be Over-Indebted

5 Signs You Could Be Over-Indebted

Managing your finances can be a challenge, especially when you have multiple debts to pay off. But how do you know when you've taken on too much debt? Here are five signs that you could be over-indebted:

1. Borrowing money to pay off other debts: If you're taking out new loans or using credit cards to pay off existing debts, you're likely in over your head. This can create a vicious cycle of debt that's difficult to break.

2. Using credit cards and overdraft facilities for basic necessities: If you're using credit cards or overdraft facilities to pay for basic necessities like food or bills, it's a clear sign that you're struggling financially.

3. Skipping payments: If you're skipping payments on some accounts so you can pay others, it's a sign that you're struggling to make ends meet. This can lead to late fees, higher interest rates, and damage to your credit score.

4. Receiving letters of demand and summonses: If you're receiving letters of demand or summonses from credit providers or lawyers, it's a clear sign that you're behind on your payments. This can lead to legal action and even more debt.

5. Judgments granted against you: If a court has granted a judgment against you for unpaid debts, it's a sign that you're in serious financial trouble. This can lead to wage garnishment, property liens, and other legal actions.

If you're experiencing any of these signs, it's important to take action to address your debt. This could include creating a budget, negotiating with creditors, or even seeking professional help from a financial counselor or debt relief service.

Remember, over-indebtedness can happen to anyone, but it's important to take control of your finances before they spiral out of control.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.

What should you do if you are struggling with debt?

If you are struggling with debt, ignoring the problem will only make it worse. To address the issue, you need to take action and create a plan to get out of debt. Follow these steps to make a realistic plan and achieve your goal of becoming debt-free:

Step 1 – Take stock of your problem

- Create a list of all your debts, the outstanding amount you owe, and the monthly repayment.

- To ensure that you have listed all your debts, obtain a copy of your credit report.

- Add up all the repayments and check the remaining income after these repayments have been deducted.

Step 2 – Consider if you need help

- Analyze your spending using your bank statements from the past six months.

- Determine which expenses you can cut and distinguish between your needs and wants.

- Use the Smart About Money Budget Planner to create a "bare-bones budget" with only essential living costs and eliminate non-essentials.

- If your income is insufficient to cover your bare-bones budget and repayments, consider selling your assets or making lifestyle adjustments to live within your means.

- Avoid using your retirement savings to pay off debt, as you may not have enough for retirement and may lose some of your savings to tax.

- If your repayments are still too high after lifestyle adjustments, you may be over-indebted and require a debt counsellor's assistance.

Step 3 – Find extra money for repayments

- Adopt your bare-bones budget and identify an amount to devote to paying down your debt faster.

- The more you can pay into your debt, the quicker you can reduce your interest and the interest charged on it.

- Inform your friends and family of your plans, and they might help you to spend less or offer ideas for reducing your household expenses.

- The bigger the sacrifice you make upfront, the shorter the pain will be. The faster you pay down your debt, the quicker the interest and the interest on interest will reduce.

Step 4 – Pay it down until you are debt-free

- Use the extra money to repay more than the minimum repayment on your debt each month.

- Decide whether you want to pay off the highest-cost debt first or the smallest debt first if you have more than one debt.

- Consider consolidating your debt if it's a good option.

- Keep paying more into your debt until you are debt-free.

Step 5 – Stay out of debt

- Set aside some savings for financial emergencies.

- Stick to your budget and live within your means to avoid borrowing again.

- If you do borrow again, make sure it's only good debt that funds a growing asset such as your home or career and future earnings.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress.

Can I cancel my debt review?

Dealing with debt review can be difficult, and many people find it challenging to adjust their budget and make the necessary changes to get their finances in order. As a result, there are often questions about canceling debt review. 

A recent case heard by the South Gauteng High Court, Hermanus Janse Van Vuuren v Neil Roets & Others, has led to changes in the law under the South African National Credit Act. In this article, we will discuss the impact of this ruling and provide information on voluntary withdrawal from debt review.

The court identified three legal ways that a consumer can withdraw from debt review voluntarily. Firstly, a consumer can withdraw before the debt counsellor makes a declaration of over-indebtedness via a Form 17.2(b). 

Secondly, a consumer can withdraw after a declaration of over-indebtedness has been made via Form 17.2(b), but no debt review court order has been processed yet. In this case, the consumer can present additional facts to the court together with their debt counsellor's proposal to facilitate a rejection of the initial over-indebtedness proposal. 

Finally, after a debt review court order has been granted, the only way to legally exit debt review is for the consumer to repay all their short-term debt, excluding long-term debts.

We want to stress that completing the debt review process is always the best course of action. Once you have repaid all your debts as outlined in your debt review order, you will receive a debt clearance certificate. This, combined with a healthy credit score, will pave the way for a more prosperous future and allow you to enter into new credit agreements if necessary. There is also a sense of pride and joy associated with finishing something you have started, which can boost your confidence.

If you need any clarification on any of these terms or have any questions about debt review, feel free to get in touch with a Libertine Consultants representative. Stay tuned to our blog for more expert insight on managing your finances and living a rewarding, debt-free life. If you want to learn more about our credit and debt services, please feel free to contact Libertine Consultants. We are here to help you pave the way to a more financially secure future.

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic. 

What does debt restructuring mean?

Debt restructuring is a process that allows individuals or businesses to reorganize their outstanding debts in a more manageable way. It is typically done when a borrower is struggling to meet their financial obligations and can no longer afford to make regular payments on their debts. Debt restructuring can be a viable option for people facing financial difficulties, as it can help reduce the burden of debt and improve their overall financial outlook.

There are different types of debt restructuring, depending on the type of debt and the creditor involved. Some common methods of debt restructuring include debt consolidation, debt settlement, debt refinancing and debt review. Debt consolidation involves combining multiple debts into a single loan with a lower interest rate, while debt settlement involves negotiating with creditors to settle debts for less than what is owed.

Debt refinancing, on the other hand, involves taking out a new loan to pay off existing debts at a lower interest rate.

Debt restructuring can have several benefits, such as reducing the overall amount of debt, lowering interest rates, and extending payment terms. It can also help improve credit scores by reducing the amount of outstanding debt and making regular payments on time.

However, debt restructuring also has its drawbacks. It can sometimes lead to longer repayment periods, which means that borrowers may end up paying more interest over time. It can also have a negative impact on credit scores in the short term, as creditors may report missed or late payments during the restructuring process.

Overall, debt restructuring is a viable option for people facing financial difficulties. However, it is important to fully understand the terms and conditions of any debt restructuring plan before agreeing to it. It is also important to seek the advice of a financial professional to determine whether debt restructuring is the best option for your specific financial situation.

If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic. 

Debt counselling vs debt review

Debt is an issue that affects many people, and it can be difficult to know how to manage it effectively. Two common approaches to managing debt are debt counselling and debt review. While these two approaches share similarities, they are also quite different. In this blog post, we will cover the key differences between debt counselling and debt review.

Debt Counselling

Debt counselling is a process where a debt counsellor assesses an individual's financial situation and provides advice and guidance on how to manage their debt. The debt counsellor will look at the individual's income, expenses, and debt obligations to come up with a plan that will help them manage their debt effectively.

The role of the debt counsellor is to provide support and guidance to the individual throughout the process. They will work with the individual to negotiate with creditors on their behalf and come up with a payment plan that is affordable for them. Debt counselling is an informal process, and there is no legal obligation on the part of the debtor to participate.

Debt Review

Debt review is a more formal legal process that is designed to help over-indebted consumers. If an individual is over-indebted and cannot meet their financial obligations, they can apply for debt review. The debt review process involves a debt counsellor working with a court-appointed debt counsellor to review the individual's debts and come up with a repayment plan that is affordable for them.

Once the debt review process has begun, the individual's creditors are legally required to stop all legal action against them. This means that the individual is protected from legal action while the debt review process is ongoing. The debt review process is more formal than debt counselling, and there is a legal obligation on the part of the debtor to participate.

Key Differences

The key difference between debt counselling and debt review is the formality of the process. Debt counselling is an informal process that is designed to help individuals manage their debt and avoid legal action. Debt review, on the other hand, is a more formal legal process that is designed to help over-indebted consumers. 

Another difference is that there is no legal obligation on the part of the debtor to participate in debt counselling. However, if an individual is over-indebted and applies for debt review, they are legally obligated to participate in the process.

Conclusion

In conclusion, debt counselling and debt review are two different approaches to managing debt. Debt counselling is an informal process that is designed to help individuals manage their debt and avoid legal action. Debt review, on the other hand, is a more formal legal process that is designed to help over-indebted consumers. While these two approaches share similarities, they are also quite different, and it is important for individuals to understand the differences between them before deciding which approach is right for them.

If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic. 

Where can i get a loan if i am under debt review

If you're wondering whether you can obtain further loans while undergoing an active debt review, I'm afraid the answer is no. When you're flagged as "Under Debt Review", this information will be displayed across all credit bureau systems. So, when you apply for a loan from another financial institution, they will see the flag during the processing of your loan application, and unfortunately, your application will be rejected.

It's important to understand that the National Credit Act has guidelines in place to prevent financial institutions and credit bureaus from lending money to people who are already over-indebted. If these institutions lend you money while you're under debt review, they will be guilty of reckless lending.

It's also important to understand that your credit rating is affected by how well you repay your debts. If you make your payments on time, your credit rating will remain positive, which is a sign that you are a trustworthy person who pays their debts as scheduled. However, if you miss one or two installments, your credit rating will fall, indicating that you have poor credibility, and lenders may have a hard time retrieving money from you.

If your credit rating falls below a certain threshold, you will be selected for a debt review by the NCA. This means that you are over-indebted and cannot pay your debts at all. During the debt review process, you will receive counseling and education on how to settle your debts smartly.

Before taking out any loan, it's important to carefully consider your ability to repay it. Taking on more debt while under debt review could make your financial situation worse. So, it's better to wait until you've resolved your current debts before considering taking on any new ones.

If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.

How to check if you are blacklisted on your credit report in south africa?

If you are in South Africa and want to check if you have been blacklisted on your credit report, there are several steps you can take:

Get a free credit report: 

You are entitled to one free credit report per year from each of the credit bureaus in South Africa (TransUnion, Experian, and Compuscan). You can request your free credit report online or by visiting the bureau's offices in person.

Check your credit report: 

Once you have your credit report, review it carefully to see if there are any listings for defaults, judgments, or other negative information. These listings can indicate that you have been blacklisted.

Contact the credit bureau: 

If you find listings on your credit report that you believe are incorrect, you can contact the credit bureau to dispute them. The bureau will investigate your dispute and make any necessary corrections to your credit report.

Check your credit score: 

Your credit score is a numerical representation of your creditworthiness and is used by lenders to determine your eligibility for credit. If your credit score is low, it could be a sign that you have been blacklisted or have other negative information on your credit report.

Seek professional help: 

If you are struggling to manage your debt and keep up with your payments, it may be helpful to seek the assistance of a debt counsellor or financial advisor. They can help you develop a plan to pay off your debt and improve your credit score over time.

Remember that being blacklisted can have serious consequences for your ability to obtain credit in the future. By regularly checking your credit report and taking steps to improve your credit score, you can avoid being blacklisted and maintain a healthy financial profile.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.

Can I apply for a loan while being blacklisted?

Applying for a loan while being blacklisted can be a challenge, but it's not impossible. Being blacklisted means that you have a history of missed payments, defaults, or other negative credit events that have been reported to credit bureaus. This can make it difficult to get approved for a loan, as lenders view you as a high-risk borrower.