Abacus Debt Consulting

Debt Counselling that CAN Work!!

Frequently Asked Questions:

Is debt review better than debt consolidation?

Debt review could legally protect you against creditors, which a debt consolidations loan will not do.  Debt review will reduce your monthly installments by up to 60%.  Debt review is much quicker and will offer an immediate debt relief, but a consolidation loan will take up to 3 months to register.  You can cancel debt review if you want, but with a consolidation loan you are tied to a credit agreement.

Why should I choose Debt Review over the other options available in my situation?

With Debt Review you will not have to surrender your house or vehicles, nor do you have to pay a large upfront fee/deposit to start the process, where as the other two mentioned options require one or the other. 

How or when would I qualify to apply?

As stipulated by the National Credit Act, a consumer is seen as over indebted when monthly repayments to Credit Providers can not be made, either short payments or in most cases no payments at all.

A consumer should seriously consider Debt Review when the consumer would not have any funds remaining to maintain the house hold living expenses, food, petrol or school fees after fully meeting his/her monthly debt repayments


When Creditors start sending consumers letters of demands, or call the consumer regularly requesting urgent payment or the account will be handed over to the legal department, this would be a clear indication that the consumer is struggling to keep up.

What if i do not receive a monthly income anymore?

The Debt Review process is still a payment to your debt process, it is a necessity to have some sort of income to enable us to undergo payment negotiations with the Creditors, if there is no money, no payments, there will not be any acceptances and then no relief for the consumer. 

I have already been served with a Summons and/or Judgment was granted against me? 

If a summons was already served on you and the matter is still pending in the court, we can TRY and negotiate a payment arrangement, considering  you are wanting to apply for Debt Review, most Creditors and/or their attorneys react positively to Debt Review.  Your Debt Counsellor can correspond with them to negotiate the best and acceptable options for you.  Should they not accept the Debt Review, that Creditor will have to excluded from the Debt Review as the legal action occurred prior your Debt Review application.                           

May I continue to use my Cards and accounts or open new account whilst under Debt Review?

… Section 88(1): “A consumer who has filed an application in terms of Section 86(1) for debt review must not incur any further charges under a credit facility or enter into any further credit agreement”.

No you may not.  Once your Debt Review application has been accepted by the Debt Counsellor, your name and information will be listed on the Credit Bureaus as a Debt Review Client, thus preventing you from obtaining any credit whilst under the Debt Review, more credit will just make the situation worse.

What actually happens to my money once it has been deducted from my account?

The Debt Counsellor will determine your affordability, this amount will then be deducted from your account by a National  Payment Distribution Agency who were created by the NCR to control the distributions to the various Creditors.  The Debt Counsellor will give the PDA instructions on who gets how much according to the consumers assessment.  There are small service fees included in this but these fees are taken out of your monthly payments, they are not requested separately from you.  

Can my Banks decide to cancel my Debt Review ?

Debt Review is quite a tight process, because it is a legal process and it is monitored by the National Credit Regulator designed by the Credit Act.  A Creditor cannot just terminate your Debt Review without just reason.  This is why it is of the utmost importance that the Debt Review clients maintain their Debt Review payment strictly, as soon as a client defaults on that payment the Creditors are then in their legal right to terminate and proceed with legal action.

Is my Debt Review Private and Confidential?


What happens once I have settled all my debt or I feel that I can handle my remaining debt without the aid of the Debt Review?

Once all your debt has been settled, all proof, such as paid up letters or account closures are requested from either you or the Counsellor will request them from the Creditors, depending with method would be quicker. Once all proof is clear that the accounts are all settled, you will then receive a Clearance Certificate,  that will also be sent to the Creditors as well as to the NCR who then update the Credit Bureaus.

Should you not have settled all your debt but feel that you can handle the remaining accounts on your own as a normal client, you simply have to request a Withdrawal from Debt Review from your Debt Counsellor.  This procedure is simple and quick but subject to change as the Rules and Guidelines of the Credit Act can alter at any time.  There may be a small termination fee depending on the status of your Debt review at the time of your withdrawal request as this is also a legal process.