In 2007, debt review was introduced with the National Credit Act. Its purpose is to assist
people who are battling to pay their monthly repayments on their debt. This includes loan
repayments, store cards, credit cards and accounts.
Consumer debt remains high, with many households finding themselves looking for
assistance in repaying the monies they owe to their creditors. If this describes you, debt
review may be the way out of the quagmire of debt.
Debt review can be the helping hand during a difficult time. The process consolidates all
your debts into one manageable monthly repayment so that you can afford to repay the
debt. The first step is to visit a registered debt counsellor.
How does it work?
At your scheduled meeting with the debt counsellor, he will determine whether you are in
fact over-indebted and debt stressed. He will, on your behalf, negotiate with your creditors
regarding reduced payments and interest rates, based on your affordability. He will also
inform them that you are officially under debt review.
It is good to note that during the first 60 business days, legal action cannot be taken against
you regarding your debts under review.
Once the proposed restructured payment plan is accepted by the creditors, the new
repayment process can begin. An affordable repayment plan is drawn up. This is then sent
submitted to a registered payment distribution agency (PDA). Your new monthly payment,
one that includes the payments to all your creditors, is paid to the PDA. They then distribute
the monies to the creditors on your behalf.
A commitment is made by you to pay the new payment each month.
Once all your debts have been repaid, you will be given a clearance certificate by your debt
counsellor. He will notify the credit bureaus that you are no longer under debt counselling.
A person under debt review is not blacklisted. The debt counselling will be removed from
your record once all debt is paid.
Debt review is a good solution to help you repay your debt, and stay protected while you do
Need more information on the debt review process? Speak to One Debt today!