Did you know that more than 50% (19 million) of credit-active consumers are over-indebted? As the Covid-19 pandemic holds a tight grip on our economy the average South African struggles to manage their finances.
TransUnion reported that 39% of South Africans plan to pay a partial amount towards their debt while 46% reported being past their due date.
Due to the pandemic, many consumers rely on credit to make ends meet, being unsure where they should turn to. To add to the pressure creditors are full steam ahead in collecting any missing payments.
Debt review is a perfect debt relief solution if you’re struggling to make ends meet.
And here’s why.
Debt review could be your saving grace if you’re earning an income and struggling to make all your payments on time.
Once you’re under debt review:
- All your debt will be consolidated into one single reduced monthly repayment
- All your assets will be protected
- Creditors aren’t allowed to harass you
What is debt review and how can it help you?
What is debt review?
Debt Review, or debt counselling, was introduced by the National Credit Act (NCA) in 2007 to help over-indebted consumers.
Debt review is ideal for consumers who are employed but are struggling to make ends meet.
If you’re employed and struggling to make ends meet, debt review could be the ideal solution for you. Especially if you’ve fallen deeper into debt.
How do you know if you’re over-indebted?
1. Spending your entire paycheck
Spending your entire paycheck as soon as you get it may be a sign that you’re over-indebted.
If you’re spending most of your income on debit you won’t have money left over for living expenses or savings.
Sooner or later this behaviour will lead to more debt and set you back even further.
2. You are living off your credit card every month
According to Old Mutual Savings and Investment Monitor, more than 30% of South Africans are using their credit cards to purchase groceries.
Credit cards are extremely easy to use especially if you’re struggling to find a job or experienced a salary cut. A credit card may seem like a saving grace, but the high-interest rates will catch up with you.
In difficult financial times like these, relying on a credit card too much may result in over-indebtedness.
3. Creditors harassing you
It’s inevitable that creditors will eventually start harassing you if you don’t pay your debt.
Creditors can contact you at any time in an attempt to collect their money. If you can’t afford to pay them, they’re allowed to take legal action against you.
Once creditors start taking legal action there’s little you can do to turn the situation around.
4. Debt on debt
You may be over-indebted if you rely on short-term loans to pay off current debt accounts. This is a clear sign that you have too much debt.
5. You are afraid to take calls
If you’re avoiding phone calls from creditors is a clear sign that you can’t afford your debt. It may be a good idea to look for professional help. Avoiding creditors phone calls may offer some relief, however, this is not a long-term solution.
How can debt review help you?
Advantages of debt review
Lower monthly repayments
As part of the debt review process, your debt counsellor, like Debt Rescue, will be in touch with all your creditors to renegotiate lower monthly repayment amounts.
This ensures that you can afford all your monthly debt repayments and your monthly living expenses.
Your assets will be protected
Creditors are legally allowed to harass you if you fall behind with payments. And even worse than that, they can take away your assets as a form of payment.
Once you’re under debt review you are legally protected against your creditors, if they haven’t started the legal process yet.
Creditors are not allowed to repossess your assets or even be in contact with you, once you’re under debt review.
Debt Rescue, or your debt counsellor, will communicate with creditors on your behalf.
So you don’t have to worry about that anymore.
Mental and emotional relief
For over-indebted consumers, it is difficult to service their debt and living expenses with their current income. This can affect your emotional and mental health.
Debt review offers immediate mental and emotional relief by reducing the stress and anxiety that comes with debt. Being under debt review you can be confident that all your creditors are paid
Only make one single reduced monthly repayment
Once you’re under debt review you’ll only have to make one single reduced monthly debt repayment.
You’ll only be responsible for making a single monthly payment to your debt counsellor, Debt Rescue, who will then take care of your debt repayment, on your behalf. To make this process as seamless as possible we will be debited from your account monthly.
We will ensure that all your debt repayments are made on time, every time.
No more credit
The process prevents you from making more debt while you’re actively trying to get rid of your debt.
Once you’ve completed the debt review process and you’re debt-free, you’ll have a clean credit score and be allowed to apply for loans.
Receive a clearance certificate
Once you’ve completed the debt review process and settled all your debt, we will issue you with a clearance certificate.
You will receive your clearance certificate within 21 days of completing the debt review process. You can start rebuilding your financial situation to healthy standing.
Take the first step
If you’re struggling to make ends meet due to huge debt bills, sign up for debt review and get the financial relief you need.
You are better off taking action now before things get out of hand.
If you need financial help contact us today. We can help you reduce your monthly debt repayments which will free up some cash for living expenses.
Complete our free no-obligation assessment to see how much your debt could be reduced and what your savings would be per month. Click here to access our online no-obligation assessment.
Fill in your contact details below and we’ll get back to you as soon as possible.