Debt review is a legal process that will help you pay off all your debt over time. This debt relief process helps make debt more manageable and teaches you how to successfully manage your finances. You will learn how to manage your debt, budget your income and manage your monthly expenses.
Debt review was introduced in 2007 by the National Credit Act (NCA) to help over-indebted South Africans with their debt. If you’re struggling to pay off all your debt while covering your other monthly expenses, you may be over-indebted.
Here are 5 reasons why debt review is the perfect solution if you’re over-indebted.
1. Only make one fixed monthly payment
Paying multiple creditors every month can become tricky, making it easy to miss payments. Missing payments can impact your credit score and even result in more debt due to high interest.
To help you stay on track with all your debt repayments, you only have to make one single monthly payment towards your debt counsellor. Your debt counsellor will make all necessary debt repayments on your behalf. You don’t have to stress about late or missed repayments anymore. Making a fixed monthly contribution towards your debt every month will help you budget all your monthly expenses.
2. Pay a reduced monthly payment towards your debt
The goal of debt review is to help you cover all your monthly debt repayments while still allowing you to cover other living expenses.
Your debt counsellor will renegotiate your repayment terms with all your creditors and reduce your monthly repayments. By paying less towards your debt every month, you’ll have more money available for other living expenses.
3. Receive legal protection
You will receive legal protection once you’re under debt review. That means all your assets are legally protected by the NCA from creditors. Your creditors are not allowed to contact you directly when you’re under debt review. You won’t have to worry about legal letters or phone calls from creditors anymore.
Your debt counsellor will handle all communication with creditors on your behalf.
4. Take a break from credit
When you’re placed under debt review your credit profile is flagged with all credit bureaus. You won’t be able to take out any more debt as long as you’re under the debt review process. This is great news! To help you become debt-free as soon as possible you’ll need to avoid debt all together for the time being and focus on eliminating debt.
This will also mean that your credit providers cannot blacklist you as you are flagged as under debt review.
Once you’ve completed the debt review process the flag against your name will be removed and you will have access to credit again.
5. Eliminate debt
We guarantee that you will successfully eliminate all debt with the debt review process. Debt review is a systematic approach that is proven to help consumers become debt-free.
If you are over-indebted, debt review may be the perfect solution to help you become debt-free. If you require debt relief please leave your contact details below and one of our senior consultants will contact you shortly.