Debt counseling

DebtGrip can help you turn a new page. Debt settlement can help you ease your cash flow immediately if you run up too much debt without having to sell any of your assets.

Debt Counseling

Advantages

Legal action by creditors is avoided.

No calls from creditors about arrears.

Lower, affordable debt payments.

Lower interest rates.

One amount is debited for all your debt and paid to the creditors on your behalf.

Debt counseling can be canceled if your financial situation improves.

After the debt counseling process, you are debt free, except for your home loan, which will return to your original payments.

Vehicles with a balance will be paid off after debt counseling.

Credit insurance gives peace of mind against retrenchment, illness or death.

Phase 1

The debt counselling application

Free consultation

When the customer contacts Debtgrip, an appointment is made for a free consultation. During this appointment, the clients 'budget, bank statements and the amount owed to creditors are reviewed to calculate the clients' level of debt.

Complete the application form

If the client decide to go ahead with debt counselling, a debt counselling application form (F16 form) is completed and relevant supporting documents are handed in at Debtgrip.

No further credit applications

When the client makes the decision to start with debt counselling and has handed in the debt counselling application form, he/she may not apply for any further credit until after the debt counselling process has been completed.

Correspondence with creditors

Debtgrip contacts the clients’ creditors and the credit buro within five days of receiving the debt counselling application form and provides them with a F17.1 form that informs them of the clients’ decision to enter into debt counselling.

Debt counseling recommendation

The debt counselor considers all available information including proof of income, cost of living and debt balances. If it is found that the client indeed has too much debt, the debt counselor sends a recommendation to all relevant parties that the client should start debt counseling.

Payment agreement

Debtgrip prepares a payment agreement that it discusses with the customer. The plan is sent to the creditors, who can accept, refuse or make counter-offers in terms of payment amounts and / or interest rates. The parties are negotiating a final, realistic and affordable agreement.

Phase 2

The legal process

Court application

The debt counselor brings a court application to make the payment agreement a court order. Creditors who have not accepted the terms of the payment agreement may give reasons why the agreement is not acceptable. The court considers the facts, finalizes the payment agreement and rules it as a court order.

Phase 3

Implementation of the payment agreement

Evaluation

If the client decides to continue with debt counseling, an application form for debt counseling (F16 form) is completed and relevant supporting documents are submitted to Debtgrip.

Collection and distribution of debt payments

Debtgrip collects one payment from the customers' bank account, divides it according to the payment agreement and pays the creditors on behalf of the customer over the agreed period or until the debt is paid off.

Debt free!

Once the client's debt has been paid up, Debtgrip will provide a clearance certificate to the client, the creditors and credit bureau. This indicates the end of the debt counseling process.

Debt counseling

Frequently asked questions

Does debt counseling take place over a fixed term or can I pay off my debt sooner than agreed?

There is no fixed term for debt counseling. You can pay off your debt earlier.

May I replace my debt counselor with someone else?

The client may decide to go to another debt counselor. The current debt counselor fees must be paid in full, after which the two debt counselors will correspond to ensure that all the documentation is transferred, and all the parties involved are notified.

Are my assets safe?

Yes. When a client enters the debt counseling process, all current credit agreements are renegotiated. Assets are not repossessed or sold.

How long does debt counseling last?

When you start debt counseling, the goal is to pay off your debt as quickly as possible without losing your assets. The term of the debt counseling goal depends on the amount of debt the client owes as well as the amount the client can pay each month. The general goal is to try to be debt free within five years.

Who qualifies for debt counseling?

Anyone who works with a fixed income that can be used to pay off debt can start in debt counseling.

What happens if my financial position suddenly gets worse?

In the event of death or serious illness that affects the client’s ability to keep up with the debt payment as agreed in the debt payment agreement, the debt counselor should be contacted immediately.

Debt counseling

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About Us.

The Debtgrip debt calculator gives you a very accurate overview of your debt levels and an insight into your financial position within minutes that is not available anywhere else for free and without obligation.