Debtfree October 2018
The October 2018 issue of Debtfree Magazine. SA's free debt counselling and debt review industry magazine. We look at the scandal at VBS Mutual Bank and other news. We also ask how paying fees can save you money?
The October 2018 issue of Debtfree Magazine. SA's free debt counselling and debt review industry magazine. We look at the scandal at VBS Mutual Bank and other news. We also ask how paying fees can save you money?
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Debt review has a similar concept. Since consumers need the ongoing<br />
help of Debt Counsellors to help organize payments, update them on their<br />
review and progress at court, negotiate with credit providers when things<br />
change or disputes arise and to review their situation and adjust things<br />
when appropriate, funds need to be set aside for these ongoing services.<br />
Something like a retainer fee system is in use. A small amount is set aside<br />
out of the consumer’s monthly debt repayment towards these costs.<br />
The consumer will also pay a monthly fee to their nominated Payment<br />
Distribution Agency (PDA). These fees enable the PDA to operate and<br />
distribute funds. Over time, the amounts that must be paid to the consumer’s<br />
various credit providers will shift and change, small adjustments often have<br />
to be made to ensure that the credit providers receive the agreed amount.<br />
Some credit providers are very picky and if the exact amount, to the cent,<br />
is not received on the agreed day, they can use this as an excuse to get<br />
out of the reduced repayment plan and try to sue the consumer for much<br />
larger amounts again. So, the correct distribution of the funds (and being<br />
able to prove these payments have been made) is vital.
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