subject: Debt Elimination Questions Answered - Part 1 [print this page] Debt Elimination Questions Answered - Part 1
Will I be listed on the Credit Bureau?
Yes, once the debt application is completed. All your credit providers will be notified as well.
What do you mean by the payment pro rata basis?
This only means that the creditor that you owe the most money will receive the biggest portion of your monthly payment.
Does it make a difference if I own my home or not?
No, it makes no difference.
Will I lose my home or car to creditors?
No, but only if you haven't received any court orders to take your assets as debt payment. Once the debt structuring process is in place your assets will be protected from repossession.
Will the re-calculated payment plan cover all my debt?
Yes, you will be able to afford all your living expenses and pay your creditors.
Will my employer and work colleagues find out that I'm under debt counseling?
No, all correspondence will be done with the strictest confidentiality.
Can I still use my credit cards?
No, once your debt restructuring proposal is submitted to your creditors and the NCR, all your credit will be stopped.
Will creditors continue to harass me for payments?
They are obliged, according to the National Credit Act, to stop sending you summons and final notices once you are in the debt review process.
Can creditors refuse to receive lower payments under debt counseling?
They are not obliged to accept any offers of repayment, but they will be prepared to accept reduced payment offers under debt restructuring.
How long will I have to remain under Debt Counseling?
You are free to terminate the debt counseling services at any time, but your status will remain 'under debt review' until all your debt has been cleared.
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