What is Debt Review?

Debt Review or Debt Counselling is a process of handing over your debt negotiations to a Debt Counsellor, a person who becomes your go-to person, who will compile your debts, look at your income, and with you, work out a payment plan on your installments & interest options with creditors; and then your go-to Debt Counsellor negotiates on your behalf with all your creditors. Debt Review makes your debt affordable while protecting you from asset repossession, legal action, and creditor harassment.

Here’s how debt review works.

Benefits of Debt Review:

  1. One reduced affordable monthly installment for all your debt
    1. Reduced installments with all creditors
    2. Reduced interest rates with all creditors (where negotiated)
  2. We deal with your creditors directly, so you don’t have to
    1. Creditors may no longer harass you for payment
  3. There is a structured repayment plan with an exit date as a goal
  4. You will have enough money to pay your living expenses
  5. Your assets will be protected against legal action
  6. You end the process debt free and eligible for credit again
  7. There are reduced credit life insurance premiums

Debt Review is over-indebted consumers’ last and most effective solution to their debt dilemmas. Before the Credit Act was amended in 2007, consumers were left to fend for themselves against their creditors. Fortunately, the new legislation initiated debt review which protects the consumers from their creditors.

With Debt Review, consumers repay their debt with reduced installments and reduced interest rates in terms of a structured repayment plan.

One of the advantages thereof is that the debt counselor and the Court act as mediators between the consumer and their creditors.

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Debt Review, step-by-step
How Debt Review Works Infographic

Some facts regarding Debt Counselling

  • The National Credit Act, No 34 of 2005 finally came into operation on 1 June 2007.
  • The Act provides for a debt relief mechanism whereby Consumers, who are over-indebted, can apply for debt review to reduce their monthly debt obligations.
  • The aim and purpose of the Act is, amongst others, to assist Consumers to lead a normal economic life without being pressurised or victimised by credit providers for payment in circumstances where they can no longer afford to honour their payment obligations unto their credit providers.
  • Consumers will be over-indebted if, after providing for their monthly living expenses, are unable to afford their debt obligations.
  • Consumers can, for example, prevent their assets, including their home, motor vehicle and furniture, from being foreclosed upon and attached by their credit providers.
  • Credit Providers are furthermore obligated to participate in the debt review process and it cannot be avoided.
  • Once a Consumer’s debt obligations have been re-arranged, they will be able to honour their payment obligations unto their credit providers in reduced installments affordable to them.

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