Are you struggling with debt? Are you scared to answer the phone because its sure to be someone harassing you for payment? Getting a debt review can help. Get a debt counsellor to assess and assist you with filing an application and ensuring that you are issued with a debt clearance certificate once all your debts have been settled.
Individuals who are over-indebted are eligible for a debt review. These are people who, after deducting their living expenses from their net salary, have less cash left over than the instalments on their total debt. In such a scenario, you are required to apply for debt counselling with an experienced debt counsellor.
The debt review process came into being in 2007 when the National Credit Act introduced it in South Africa. The process benefits over-indebted individuals in that no legal action can be taken against them when they are in the process of getting debt counselling or when they are paying off their debts.
How A Debt Review Process Works
Firstly, you need to find a reliable debt counsellor. This can be done by searching through the National Credit Regulator website. You are then required to submit your payslip, ID document and your planned monthly repayment plans. Additionally, youre required to have a monthly budget that indicates your daily expenses.
A debt counsellor will then determine if your payments are unaffordable based on your current income. This is where youll be termed as over-indebted. Furthermore, a debt counsellor will work with you to come up with a plan that will help you repay your debt and still have some left for your daily living.
Costs involved in the debt counselling may include an application fee, rejection fee, restructuring fee, a monthly fee and a fee if you withdraw in future. Your debt counsellor should be able to clearly explain these fees and answer any questions you may have.
A debt counsellor then contacts credit providers and informs them that youre under debt counselling. This form of protection is removed once youve fully repaid your debt. Once the credit providers approve the repayment proposals sent by the debt counsellor, a legal consent order will be issued. In some cases, the interest and fees payable by the consumer may be reduced.
Yes, There Is Light At The End Of The Debt Tunnel!
If one of the credit providers fails to agree to the terms, the debt counsellor will seek the decision of a magistrate over the proposed debt repayments. Courts often approve reasonable repayment plans.
Youll then be issued with a final repayment plan by your debt counsellor wholl then submit it to a payment distribution agency. The agency then splits the amount to credit providers each month. Your only task is to pay your monthly instalments until the whole amount has been cleared.
Debt review has helped thousands of South Africans to deal with their debt and live happily ever after. If youre struggling with debt, do not keep quiet and assume things will work themselves out. Take action and contact One Debt today!