How does the free Debt Review Assessment work?

Has debt taken over your life? Do you often juggle debt repayments with living expenses? Debt is an emotional daily drain for millions of South Africans.

Debt review is a successful solution for over-indebted South Africans with an income. This highly regulated process allows consumers to renegotiate the terms of their credit through a debt counsellor.

Your debt counsellor will legally negotiate the amount you pay towards debt every month and potentially reduce interest rates on unsecured debt.

If you’re considering debt review but are unsure how the assessment works, you’ve come to the right place. Understanding the debt review assessment process is crucial in determining whether you qualify for debt review and how it can benefit your financial situation.

Are you over indebted? Use our calculator to find out.

Keep reading to find out the steps involved, we explain what to expect during the no cost obligation free assessment , and outline how this process can help you regain control over your finances.

Step 1: No Obligation Assessment

This no-obligation assessment is a critical step in evaluating whether you are over-indebted and that you qualify for debt review. A certified debt counsellor will thoroughly review your financial situation, including your income, expenses, and debts.

Here’s what to expect:

Step 2: Credit Report

The debt counsellor will review your credit report to understand your debt and credit history. This helps identify all your outstanding debts and any missed payments.
By analysing your credit report, the counsellor can get a clear picture of your current financial commitments and any potential issues that need addressing.

Step 3: Determining Over-Indebtedness

Once the financial assessment is complete, the counsellor will determine if you are over-indebted. Here’s how this determination is made:

Step 4: Eligibility Criteria

Based on the assessment, the debt counsellor will determine if you are over-indebted. In South Africa, being over-indebted means you cannot fully meet your debt obligations while covering your basic living expenses.
The counsellor will look at your ability to pay for essential living costs, such as housing, food, and transportation, while managing your debt repayments.

Step 5: Financial Obligations

The counsellor evaluates whether your current financial obligations exceed your ability to pay. This involves a detailed look at your income versus your essential expenses.
If your financial obligations are too high, it indicates that you might benefit from a debt review program to help manage and reduce your debt.

After completing the no-obligation assessment, your debt counsellor will provide you with a new, reduced repayment plan. You can choose to follow this plan if you decide to proceed with the application.

Benefits of Debt Review

Entering the debt review process comes with several significant benefits:

Reduced Monthly Payments: A tailored repayment plan can lower your monthly debt payments, making them more manageable. This reduction helps free up cash flow, allowing you to cover your essential living expenses more comfortably.
Protection from Creditors: Once under debt review, your assets are protected from repossession, and creditors cannot take legal action against you. This protection provides peace of mind and stability as you work towards financial recovery.
Improved Financial Management: The program helps you gain control over your finances and work towards becoming debt-free. With professional guidance, you can develop better financial habits and strategies to avoid future debt issues.

Taking the Next Step

For more information on how the debt review process works and to get started with your free assessment, visit Debt Rescue. Debt Rescue offers professional guidance and support to help you through this process. By taking the first step towards debt review, you can regain control over your finances.

Are you struggling with debt while earning an income? If so, let our expert counsellors provide a no-obligation, cost-free assessment to consolidate and reduce your monthly repayments for immediate financial relief.