Definitions

Debt review #

Debt review is a process to assist SA citizens who are over-indebted by reducing their interest rates up to 50% automatically. Installments will be lower as well. It was amended under section 86 act 34 of 2005. The process offers benefits such as legal and asset protection and a suitable household budget. Debt review has one disadvantage of not having access to creditors while you are flagged and it is a legal process that involves Attorneys and includes Debt counseling fees for a Debt counselor and Legal fees for Attorneys for the 1st 2 months – also known as the 60 working days of negotiations.

Payment is then made to creditors from the 3rd month going forward, including a 5% of aftercare fees maximum of R400. When all accounts are paid up the process provides a clearance certificate (form 19) and the client can start opening new accounts with no trace of Debt review.   

Garnishee #

Is a court order that is served by the sheriff (or messenger) of the court on the employer ordering the employer to make deductions from an employee’s salary or wage in settlement of a debt owed by an employee to a third-party creditor.

Judgement          #

A creditor is a party to which a debt is owed that has proved the debt in a legal proceeding and that is entitled to use the judicial process to collect the debt.

Overdraft #

It is a credit facility linked to a cheque account. A bank account overdraft happens when an individual’s bank account balance goes down to below zero, resulting in a negative balance.

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