Debt Review Explained

Being in debt can result in anxiety. It often causes marital strife. Studies show that 9 out of
10 South Africans are worried about being able to pay their monthly bills and debt
payments. They also show that South Africans are paying 75% of their income on debt,
resulting in only a quarter of their salaries free for any other purchases.

Debt review or debt counselling is a legal process for debt relief. How it works is that a
registered debt counsellor can assist with assessing your financial situation. He will make a
list of all your debt and take a look at your income. He’ll list you on the NCR database. The
NCR then notifies your creditors that you have applied for debt review. The debt counsellor
will negotiate, on your behalf, with your creditors for a more manageable repayment plan
based on your affordability. Then he will assist you in working out a payment plan on your
instalments. Once the repayment plan is agreed on, you will start making monthly payments
to the payment distribution agency. They will pay your creditors on your behalf.

the process is complete and all your debt has been repaid, you’ll receive a clearance
certificate and the credit bureaus are notified.

Some people feel too ashamed or overwhelmed to apply for debt review. Debt review is not
a difficult process and there are numerous benefits if you are overindebted.

  • You will gain peace of mind knowing that you have a structured plan to becoming
    debt free.
  • You will pay one affordable monthly instalment for all your debt.
  • You will have sufficient money for your living expenses.
  • Your debt counsellor deals with your creditors on your behalf. You won’t receive any
    more frightening phone calls from collection agencies.
  • Your assets will be protected from legal action.
  • As it is a structured repayment plan, there is an exit date as a goal.

Applying for debt review isn’t as difficult as one might think. It is also a responsible step
towards becoming debt free.

For more information debt review, speak to One Debt today