If you’re struggling to cover all your monthly debt repayments and other monthly expenses, debt relief may be a solution for you. Debt review can help you restructure your debt and reduce your monthly debt repayments to make it more manageable. Your debt will be consolidated so that you only have to make one reduced, single monthly debt repayment.
You will also be provided with a repayment plan that will help you structure your repayments to get you out of debt as soon as possible.
If you earn an income and are struggling to make ends meet due to debt, then debt review may be exactly what you need.
What is debt review?
Debt review was introduced by the National Credit Act (NCA) in 2007 to help over-indebted consumers pay off their debt. If you’re struggling to cover basic living expenses because of debt, you may be over-indebted.
When under debt review, you hand over your debt to a debt counsellor who will help you restructure your debt whilst working towards becoming debt-free.
Your debt counsellor will renegotiate lower repayment terms on all your debt accounts so that you have more money available for other expenses. Your debt counsellor will also work out a repayment plan for you to ensure that you can cover all your monthly instalments.
By reducing your monthly debt repayments you will have sufficient funds available for your essential living expenses.
Before applying for debt review we urge you to use our online calculator to determine by how much you could reduce your repayments to, should you consider debt review.
How does debt review work?
First, you have to find a debt counsellor. Debt Rescue has been rated as a top debt counsellor in South Africa.
Your debt counsellor will renegotiate lower monthly repayment terms on your behalf. By reducing your monthly debt repayments you’ll have more money available for other financial obligations like childcare, groceries, household expenses etc.
Once you’re under debt review, your debt counsellor will take care of all your debt repayments on your behalf. That means you only have to make one single reduced monthly debt repayment through your debt counsellor, instead of paying all your creditors yourself.
Your debt counsellor will then draw up a monthly personalised budget for you so that you have a structured plan to become debt-free. You can use this plan to see exactly how much you owe per month and how close you are to becoming debt-free.
With every repayment, you’ll be one step closer to getting out of debt.
To help you eliminate your debt as quickly as possible you will no longer have access to credit while you’re under debt review. This has been put in place by the NCA to help you take control of your current debt situation.
Once you’ve paid up your debt and received a clearance certificate, you’ll have access to credit again. Your debt counsellor will notify all credit bureaus that you’ve completed the process and they’ll remove the debt review flag from your records.
When will you be debt-free?
It depends on you and how much you’re willing and able to pay towards your debt. The more money you’re able to pay towards your debt, the sooner you’ll be debt-free. The process generally takes about 2-5 years to complete. It’s important to remain patient and committed to the process.
Benefits of debt review?
1. Only pay one reduced monthly repayment towards your debt
Once you’re under debt review your debt counsellor will consolidate all your debt into one account. That means you’ll only have to make one single reduced monthly debt repayment through your debt counsellor, who will pay all your creditors on your behalf through the use of a Payment Distribution Agency (PDA).
2. Receive a personalised monthly budget
You’ll receive a personalised monthly budget that will help you keep track of your debt review progress. This budget will also help you stay on track of all your monthly expenses and will help you budget correctly.
3. Your debt counsellor will renegotiate repayment terms with all your credit providers
Your debt counsellor will renegotiate your repayment terms with all your creditors to reduce your monthly instalments. This will help make your debt repayments more affordable so that you have more money available for monthly living expenses.
4. All your assets will be legally protected
All your assets will be legally protected from creditors. You don’t have to worry about creditors repossessing your house or car.
Debt review is the perfect solution if you’re over-indebted. The debt review process can help you get your financial situation back on track. If you would like to find out more about the process, please fill in the form below and one of our senior consultants will get in touch with you to assess your unique situation.