Debt Relief
Everything You Need to Know About Debt Relief in South Africa
If you’re worried about your debt, you’re not alone. In fact, South Africa has one of the highest household debt to income ratios in the world, standing at over 50% – quite a bit higher than the global average of around 35%. In other words, there are quite a few people out there who are in the same boat as you and who need debt relief solutions! Luckily, South Africa has fairly robust regulations when it comes to debt relief, with laws that protect both consumers and creditors and laws that allow individuals to be granted debt relief under certain circumstances.
What does debt relief mean?
Debt relief is a way for a person, who has too much debt, to get back on their feet. This means that the person will not have to worry about paying all of their monthly payments. The first thing that the person will do is file for bankruptcy or go into an individual voluntary agreement. They then need to apply for debt relief loans which will help them pay off all of their credit card debts and repay what they owe on each loan by consolidating it with one bank loan.
What will happen if I go for debt relief?
If you’ve been struggling with your debts for a long time, then it might be time for you to consider debt relief. When people are struggling with their debts, they often feel hopeless and as if there is no way out of the situation that they are in. But if this is the case, then know that there is help available!
How much will it cost me?
Getting debt relief can help reduce your monthly payments and save you from defaulting on your loans. The process may cost you some money upfront, but it can be worth the investment if it helps you get out of debt faster. There are a few different types of debt relief available, so it’s important to know what kind is best for your situation.
How to apply for debt relief?
In order to apply for the Debt Relief Bill in South Africa, you will need a letter from your creditor notifying them of your intention. The letter should include a copy of your ID and an explanation as to why you are seeking debt relief. In addition, the letter should state that the creditor agrees with this decision and that they will not pursue any action against you.
If there are multiple creditors, each creditor must confirm their agreement on their own letters.
When can I start my debt relief process?
The National Credit Act came into effect on 1 April 2009 and gives credit providers the power of garnisheeing wages, withholding taxes, blocking bank accounts and taking property. The court can also order a debtor’s goods to be sold at auction. In most cases the courts will not take action until all other debt relief measures have been exhausted. The court will only consider debt relief when it is satisfied that the debtor cannot pay back their debts within a reasonable time and that they do not have sufficient assets to cover them.
Benefits of debt relief
A benefit of debt relief is being able to keep your car, for example. Another benefit of debt relief is that you don’t have any more payments; as soon as it’s finished, the account is settled for good. It means that you’ll no longer be harassed by collectors on a daily basis and it also means your credit score will be dramatically improved. Your credit rating will go up when you’ve repaid all your debts through debt relief or managed to pay them off bit by bit. Getting your finances back on track is one benefit of debt relief and another great thing about it is that there are many ways to get this done. The process might be difficult at first, but it’s worth every penny once you’re free from an overburdened financial situation.
What happens if I change my mind?
It is not possible to change the details of your debt relief agreement. If you want to stop your debt relief application, please let us know as soon as possible and we will cancel it for you. However, it is important that you understand that if your application is cancelled, any funds which have been paid to the credit provider will be used by them before they can be returned to you.
How do I get started with an accredited company?
There are a number of ways you can get started with an accredited company. First, you need to contact the company and ask them what they offer. The second thing you can do is find out if the accredited company has a website or not. Make sure that the website lists their prices, services offered, any testimonials from customers who have used their services before and any other information that might be important for you to know about them. You can also contact us and we will call you back. Simply call the number on our website or fill in the contact form.