Frequently Asked Questions

This is a process that combines all your monthly debt repayments into one payment. The main aim is to reduce the installments to provide financial relief to the consumer. Debt consolidation itself is not a specific product, but a term used to represent all processes that aim to achieve this goal.

In South Africa, there are two types of debt consolidation: Debt counselling/review and a consolidation loan. Each of these solutions has unique qualifying criteria and benefits. Vantage specializes in helping consumers determine which option would work best.

Debt counselling was created to get over-indebted consumers out of debt. An NCR registered debt counsellor will assess your entire financial situation and work out if they can assist you with a new, affordable repayment plan. They will then formally negotiate with all your credit providers to reduce monthly installments and interest rates.

A consent order is granted to formalise the new repayment plan. Payments are made through an NCR registered payment distribution agency that distributes the funds to each credit provider monthly. Once all the debt has been paid you will be issued a clearance certificate. Your credit record will be restored, and adverse information will be cleared.

Over-indebted means that your current income is not enough to cover your living expenses and debt repayments. This leaves you with a shortfall in your budget each month. Usually, over-indebted consumers rely on new loans, credit cards and overdrafts to make it through the month.

A consent order is granted to formalise the new repayment plan. Payments are made through an NCR registered payment distribution agency that distributes the funds to each credit provider monthly. Once all the debt has been paid you will be issued a clearance certificate. Your credit record will be restored, and adverse information will be cleared.

You can start as quickly as your next pay date.

A credit score is a number representing a consumer’s credit risk which is calculated by the various registered credit bureaux. Your credit score is based on your credit profile, repayment history and various other factors. If you have a lot of debt relative to your income, keep applying for new debt and have missed a few payments (known as arrears), your credit score is likely to be low.

If you have a manageable amount of debt that you pay on time each month, you are likely to have a high credit score. Credit providers use this credit score to determine your level of risk and whether they will lend to you and at which interest rate.

Due to getting the benefit of reduced interest rates and Installments you will not have access to credit while under debt counselling. This process aims to protect you from becoming further indebted which allows you to focus on paying off your current debt. Once the short-term debt and vehicle is paid off, you will not have any issues applying for credit and you will be in a much better financial position.

No, debt counselling does not blacklist you. The term blacklisted refers to a negative credit record and a low credit score, resulting in most of your credit applications being denied by credit providers. On the contrary, debt counselling can in fact improve your credit score.

Your credit score is based predominantly on your payment history. Under debt counselling your payment will be affordable for you, this means you can consistently make your payments. Over time, this will increase your credit score and improve your credit record.

Once you complete the process, any records related to Debt Counselling will be removed from your credit profile.

Certainly. Once the debt counselling process is completed you will receive a Clearance Certificate which is also issued to all credit bureaux and credit providers. Any records related to Debt Counselling will be removed from your credit profile. As you will be in a much better financial position, with sufficient affordability, you will be able to apply for vehicle finance, a home loan or any other form of debt.

You are considered “blacklisted” if you are unable to get more loans or new debt from credit providers. This is probably due to a low credit score caused by missed payments, legal action and other adverse information. To improve your credit record, you need to catch up on all arrears and continue full payments for an extended period of time. If your loan applications are being denied repeatedly, you might be over-indebted and in need of debt counselling.