Even before the coronavirus pandemic, South Africans were struggling with their debt. However, things have gotten worse.
TransUnion found that 61% of South Africans have been negatively impacted by the pandemic. Many used their savings or pension funds to help pay the bills, whilst others relied on credit cards and personal loans.
But consumers are seeing the impact of their financial decisions now. Two in five consumers, or 43%, are in arrears with more than 3 months on their debt repayments. And 76% of South Africans are running out of money before the end of the month.
You may have found yourself in a position where you’re constantly worrying about all your monthly expenses. Can you afford to pay your debt repayments this month? Can you afford the rent/mortgage payment this month? What about health care, child care and groceries?
Financial stress and anxiety can be an exhausting and overwhelming experience, leaving us feeling trapped, with no solution.
However, there is a solution for those who are suffering from over-indebtedness. A solution that allows you to approach your debt in a responsible manner and get you back on track.
If you’re in a position where you’re overwhelmed with financial stress and anxiety, it is time to take action and consider professional debt relief options. The most affordable and safest debt relief option is Debt Review.
Debt review is an ideal solution when you have too much debt to cope with, but you’re earning an income from a salary, pension fund, property rentals, UIF etc.
You can prevent the worst from happening by taking action before your finances get out of hand.
What is debt review?
Debt review is a financial rehabilitative process that helps fix your debt in a structured way. The process was introduced in 2007 by the National Credit Act (NCA) to prevent consumers from being blacklisted and losing their assets such as their car or home.
Once you’ve been placed under debt review, your debt counsellor will consolidate your debt and pay all your creditors on your behalf. You’ll only have to make one single reduced monthly repayment, and your debt counsellor takes care of the rest.
To help make your debt repayments more affordable, your debt counsellor will renegotiate your repayment terms with all your creditors. This will make your debt repayments more affordable so that you have more money available for other monthly expenses.
Because debt review is a legal process, all your assets will be protected from creditors. That means your property, vehicle and other assets are protected against repossession. All you need to worry about is making sure you cover your single monthly instalment.
Once you’re under debt review, the NCA restricts you from making any more debt until you’ve completed the process. This has been put in place to help you pay off your debt as quickly as possible and to protect you from making more debt which will only devastate your financial position further.
As part of the debt review process, you will receive a personalized budget that will help you organize your repayments and budget successfully. You can use this budget plan to avoid becoming over-indebted in the future.
When you’ve completed the debt review process, you can start rebuilding a healthy financial position.
To find out more about debt review click here.
How can you apply for debt review?
Use our online debt calculator for an estimation of what your reduced monthly instalment amount could be every month with debt review.
If you are over-indebted and you want to benefit from the debt review process, request a callback today by filling in the form below. We will contact you to assess your financial situation and help you fix your debt.
Alternatively, contact us directly and we’ll assist you as best we can.
If you are over-indebted, take action before it’s too late. Fill in your contact details below and one of our friendly consultants will get back to you ASAP.