Maintaining Payment of Debt Review installments during the Coronavirus Crisis

Reading Time: 2 minutes

Debt Review is a process governed by the laws of South Africa, specifically, the National Credit Act 34 of 2005.

Your Debt Counsellor has no power to “allow” you to reduce or not pay your installment. Even with the current crisis. You MUST continue to pay your installment in order to retain the protection of the Debt Review.

There is a process that can be followed by your Debt Counsellor, if there are circumstances that led to you not being able to make payment of your installment. For the Debt Counsellor to proceed with these steps, they will need copies of any documentation that you have that proves the crisis. If you have been retrenched or placed on short-time, forward a copy of the letter received from your employer to the Debt Counsellor. At the same time, advise your Counsellor of what steps you have already taken with regards to a claim from UIF and also provide the DC with an updated budget showing your current circumstances. By providing all of this information as early as possible, you give the Debt Counsellor all the information and proof that they need to negotiate on your behalf with the creditors.

At this stage, Standard Bank, Nedbank, FNB and ABSA have all announced that they will be assisting individuals. The consumers themselves will need to get in touch with the banks on their own. If you do make an arrangement with the bank for certain reductions, please make sure that you get the arrangement in writing and forward a copy to your Debt Counsellor.

In closing

Please, whatever you do, keep your DC up to date on what is going on with you and your situation! The only way we can assist you is by having as much info about what is happening with you.

You can read a second part to this article on our post named Paying your Debt Review during the Lockdown

You can forward any relevant information or questions in this regard to Denver at info@dbdc.co.za or via Whatsapp to 0825232484.

Good luck and stay safe.