This is a detailed explanation of what debt counselling or debt review involves.
Throughout South Africa thousands of customers from all demographics have benefited from the debt review process.
The National Credit Act’s Debt Review program is a legal procedure that totally addresses your financial situation while shielding you from legal action by your creditors and asset repossession.
Debt Review works like this: We get you debt free in less time for half what some of the other debt counselling companies charge. You will be able to tell us exactly how much money you owe so we don’t waste any time getting started on reviewing your accounts. If there are errors or omissions on your bill we’ll let you know immediately. And if we find additional charges or fees we’ll contact you before doing anything.
Debit review allows you to monitor credit card statements online for free with a quick look at your current balance. With debit review you will be able to spot any unexpected payments or charges on your statement and catch them before they are paid off.
We use an algorithm based on our analysis of various metrics such as credit scores, income levels, length of debt, current interest rates, etc. When you sign up for debt review you’ll get a customized report with your recommendations for paying off your debt. You’ll also be informed about upcoming bill due dates and encouraged to make payments when they’re due.
As financial savants, our team of Debt Rescue debt counselling professionals is here to free you from the shackles of oppressive interest charges. By offering a free debt review from the perspective of a credit card company we provide a comprehensive analysis of your financial situation and devise an action plan to help you emerge from the abyss of debt.
Whether you’re curious about how debt review works or are simply looking for a way to improve your financial situation our expert team is here to help. And with our state-of-the-art system it’s easier than ever to determine your eligibility for debt review, calculate potential savings and understand the ins and outs of the debt review process. Don’t let debt weigh you down any longer – let our Debt Rescue team help you soar to financial freedom.
Simply put, debt review is the process of turning over your debt negotiations to a debt counsellor, who becomes your go-to person. This person will compile your debts, look at your income, and work with you to develop a payment plan with creditors that considers your options for installments and interest. Next, your go-to debt counsellor will negotiate on your behalf with all of your creditors.
Debt counseling’s primary goal is to assist you in eliminating your debt permanently while still leaving you with enough money to pay for other expenses.
By extending your repayment period, your debt counselor will lower your monthly debt payments. All correspondence with creditors will be handled on your behalf by your debt counselor.
In order to help you pay off your debt and take care of your daily expenses, your debt counselor will bargain with your creditors for lower interest rates and longer payment terms. There are alternative options that you can consider if you’re unemployed.
You will not be eligible for debt review if a debt counselor finds that you are not over-indebted.
With the National Credit Act’s revisions in 2007, debt review, often known as debt counselling became law. Debt counselling is becoming more and more popular amongst many South Africans as a way to deal with financial issues.
If debt counselling is not the best course of action for your specific situation we will direct you to one of our preferred service providers who can help you with the most suitable procedure such as sequestration or possibly selling your property.
Access To Credit And Credit Cards
While under debt review you are not permitted to increase the available credit on your credit card or overdraft, obtain a personal loan, open a store account or finance a car.
Contrary to popular belief, undergoing debt review does not condemn you to a lifetime of financial infamy. In fact, once the review is complete and any necessary adjustments have been made, any indication that your file was under review will be expunged from your credit record or credit report.
So, rather than being placed on a “black list” debt review offers a chance for financial redemption and the opportunity to rebuild your credit. Rest assured that our team of expert debt counsellors will guide you through the process and ensure that your credit record is safeguarded every step of the way.
Monthly Debt Repayments
Are you paying off your debts late or missing payments altogether?
It is an NCR-monitored debt solution where a certified debt counsellor guarantees that you will be able to afford both your regular living costs and your monthly debt repayments.
Your monthly loan payments are not only consolidated into one payment but also significantly decreased during the debt review process allowing you to pay down your debt in addition to other basic living expenses like food, child care, transportation to work, etc.
The end results is a reduction in the amount of debt you pay each month by consolidating it.
A payment distribution agency will receive only one monthly debt payback from the client as part of the debt review procedure; this payment distribution agency will then pay the client’s credit providers.
Once all of the substantive and procedural statutory requirements have been satisfied, the only way to conclude or leave debt review is in accordance with section 71 through the issuance of a clearance certificate by a debt counsellor.
The form 19 clearance certificate can then be issued by a debt counsellor.
Direct payment to the creditor: If a consumer chooses to pay their creditors directly rather than through the PDA, they must still submit paid-up letters to the debt counsellor in order to obtain a clearance certificate and remain under debt review.
If you need assistance with paying off your debts then contact us and we will call you back no matter where you are in South Africa.
Debt Review Removal
Unless a debt counsellor can show that all obligations under all credit agreements with the exception of a mortgage loan have been paid in full the client cannot be removed from debt review.
The Debt Counsellor will notify the National Credit Regulator and remove the debt review listing from your credit profile only once such an application has been approved.
If you don’t follow this procedure the debt review status will stay on your credit report until all of your debt has been paid off.
Frequently Asked Questions
1. What is the disadvantage of Debt Review?
Debt review, while an effective solution for those struggling with overwhelming debt can be a challenging and laborious process that requires considerable effort and time. In order to accurately determine the full extent of your financial obligations, you must contact each creditor individually which can be a tedious and drawn-out process that may extend over several months. However, for those willing to put in the work debt review can provide much-needed relief and a path to financial stability.
2. What debt can be included in Debt Review?
Debt review can encompass any type of debt. We take into account all kinds of debt including credit card debt, auto loans, home loans and personal loans. We offer free debt analysis to all our clients.
3. Can I settle my debt while under Debt Review?
Even while enrolled in a debt review program it is still possible for you to pay for your necessary expenses. However, it is crucial to proceed with caution and heed the instructions provided by your creditors as failing to do so could result in incurring late payment fees and potentially jeopardizing your debt relief efforts. Exercising prudence and adhering to the guidelines set forth by your creditors can help ensure a smooth and successful debt review process.
4. Is it a good idea to be under Debt Review?
For anyone but especially for those just starting out on their financial journey living debt-free is an essential objective. Your level of stress and worry about money can be lowered by avoiding debt allowing you to live a more carefree and satisfying life. However, it is crucial to have a clear awareness of the measures necessary to rectify the situation and achieve financial stability if you find yourself trapped by debt. If you are unable to pay your debts then going under debt review is a good idea.
5. Can I still use my credit card after Debt Review?
Yes! Although credit cards are excellent purchasing instruments they come with exorbitant fees and interest rates. Be mindful of your monthly spending if you do decide to continue using your credit card. Try to limit how much you charge in order to keep your expenses covered and steer clear of unnecessary purchases.