Debt Review can Help

You may be one of the many South Africans who are battling to meet their monthly debt
obligations. A large number of consumers fall easily into the debt trap, without first carefully
thinking about the consequences of opening a new store card, using their credit cards or
borrowing money. However, it only takes one life-changing event to move a balanced
budget into over-indebtedness. This could be illness, job loss, divorce or many other
unexpected events. However, there is help available to those who are struggling and want
to clear their debt.

Consider debt review. The National Credit Act introduced debt counsellors to end reckless
credit. It is a ten step plan where the creditor makes one affordable monthly payment
leaving enough money for living expenses. While you are under debt review, creditors will
not contact you or pursue legal action against you.

The Plan

Make an appointment to see a registered debt counsellor. Your debt counsellor will gather
information regarding your creditors and the amounts that you owe. Based on your income
and living expenses, your monthly payment to creditors is then decided on. You make only
one payment each month to a Payment Distribution Agency (PDA), which they pay to your
creditors. You do not have to communicate with your creditors at all. The debt counsellors
do that for you. At a given future date, you will be debt free.

Debt Review Can Help

The National Credit Review’s plan for assisting over-indebted consumers become debt free
brings relief to many each year. However, each creditor must follow the rules of debt
review. The most important rule is making the agreed payment each month. Equally
important is that you may not incur further debt during the period covered by the review.
All your purchases will be in cash. Once you repay your debts, your debt counsellor will issue

a clearance certificate to your creditors, the National Credit Review and the credit bureaus.
Those agencies have five days to clear your credit record. Not only are you debt free with a
good credit rating but you have learned to live within your means. Debt review is an
excellent plan to assist over-indebted consumers in becoming debt free and the chance for a
new financial start.

Speak to a friendly consultant at One Debt today for assistance with debt review