Getting your free no obligation debt review assessment is the first step in the debt review process. The assessment determines whether you are over-indebted and therefore eligible for debt review. A debt counsellor will conduct a thorough assessment of your financial situation, taking into account your income, expenses, and debts.
During the assessment, the debt counsellor will review your credit report to get an overview of your debt and credit history. They will also look at your monthly income and expenses to determine your debt-to-income ratio. If your debt-to-income ratio is high, it’s a sign that you are struggling to keep up with your debt repayments.
Based on the assessment, the debt counsellor will determine whether you are over-indebted. In South Africa, an individual is considered over-indebted if they are unable to meet their debt obligations in full and still have enough money left to cover their basic living expenses.
If the debt counsellor determines that you are over-indebted, and you decide to go ahead with an application, they will then proceed to apply for debt review on their behalf. The application involves submitting the assessment report and other relevant documents to the National Credit Regulator (NCR) for approval.
Overall, the assessment process is critical in ensuring that only eligible individuals are admitted into the debt review program. It also helps the debt counsellor to understand the individual’s financial situation and create a realistic repayment plan that is tailored to their needs.