Are you struggling against what feels like an endless tide of debt? You are certainly not
alone. In these uncertain times, especially now that the pandemic has emerged in force,
many South Africans find themselves as over indebted. This means that they are unable to
meet their monthly payment obligations to their creditors. The cost of living keeps rising
and it may be that you or your partner has been retrenched or the working hours reduced.
There is help available:
There is help at hand. The National Credit Act introduced debt counsellors to assist with
over indebted consumers with a process called debt review. The idea and essentially the
goal behind debt review is to help consumers devise a restructured payment plan in order
to successfully repay all debt, while still meeting an acceptable standard of living.
Undergoing debt review entails a newly developed payment plan which is affordable to you.
It will also be acceptable to your creditors. Debt review will also assist against having to be
placed under administration which is both a lengthy and costly exercise.
Many benefits of debt review:
- Only one affordable monthly payment is made to a payment distribution agency.
- It allows for sufficient funds for living expenses.
- The debt counsellor will speak to the credit provider on the client’s behalf.
- If a client has not been listed, the National Credit Act protects the client from being
legally pursued or blacklisted.
- If and when necessary, installment amounts can be reduced.
- Repayment terms can be extended.
- Once all debt has been repaid to the creditors, a clearance certificate, also known as
Form 19, will be issued to the client and to all the client’s creditors on his behalf.
Within 5 days, the client’s credit record is clear.
There is a way forward when times seem swamped by too much debt. Speak to One Debt
today for assistance and guidance regarding debt review.