Debt review can change your life. It can help you structure your debt and make handling your total monthly repayments more manageable. Your debt counsellor will consolidate your debt so that you only have to make one reduced, single monthly debt repayment. You will also be provided with a payment plan that will help you structure your repayments to get you out of debt as soon as possible.
Going under debt review shows that you are taking control of your finances and that you’re ready to live a debt-free life.
Debt review is a perfect solution for over-indebted consumers. 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 affordably pay off their debt. If you’re struggling to cover basic living expenses because of debt, you may be over-indebted.
Simply put, debt review is the process where you hand over your debt to a debt counsellor who will help you restructure your debt and to work towards becoming debt-free. Your debt counsellor will renegotiate lower repayment terms of your accounts so that you have more money available for other expenses. Your debt counsellor will work out a payment plan for you to ensure that you are able to cover all your instalments. In addition to this you will have sufficient funds available for you essential living expenses.
Debt review makes your debt more affordable every month while protecting your assets and providing legal protection.
Before applying for debt review we urge you to use our online calculator to determine how much you can save should you consider debt review.
How does debt review work?
When you’ve decided to take action against your debt, it’s time to take the first steps towards a debt-free future. First, you have to find a debt counsellor. Debt Rescue has been rated as a top debt counsellor in South Africa.
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. Paying a lower monthly debt repayment will open more money available for other monthly expenses.
Your debt counsellor will also 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.
Once you’re under debt review your name will be flagged with all the credit bureaus to prevent you from making further debt. This has been put in place by the NCA to help you become debt-free as soon as possible. Once you have paid up your debt and received a clearance certificate, you are free to apply for credit again.
How long does debt review take?
The process generally takes about 2 – 5 years to complete. It’s important to remain patient and committed to the process. However, 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.
You’ll receive a clearance certificate within 21 days after you’ve paid up all your debt under debt review. Your debt counsellor will also notify all credit bureaus that you’ve completed the process and they’ll remove the debt review flag from your records.
Benefits of debt review?
1. Only pay one monthly reduced 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 personalized 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 to 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. By doing this your debt counsellor 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.