Is Debt Review a Good Thing

If you are struggling to make ends meet or have a challenging time meeting your debt
repayments, it is likely that you are over-indebted. A person who is over-indebted is one who
has more debt than the income they receive. Very many South Africans are over-indebted.
Many are lulled by adverts that say ‘buy now, pay later’ not thinking about when later comes,
they may not have the money to pay for the new item they bought on credit.

There is assistance available for those who cannot see a way out from under their
overwhelming debt. It is called debt review or debt counselling. The National Credit Act
replaced both the Usury and Credit Agreement Acts in June 2007. One of its aims is to help
consumers be free of over-indebtedness. This gave rise to debt review which is a rehabilitation
programme to help consumers that are in deep debt. However, it is not financial support.
Instead, it is assistance for those who genuinely need help in making ends meet.

What is it about?

Debt review offers several benefits. These include:

  • Consolidation of all your debts into one reduced monthly repayment plan
  • Your assets – and these include your house and car – are protected from being
  • Only one monthly payment is required
  • Your amended budget will ensure that you have sufficient money to live on before the
    amount for the debt is calculated
  • Your debt counsellor will suggest ways to help you cut down on costs and save money
  • Once your debt is paid in full, the flag against your credit profile is removed

How can I start?

If you find yourself in a precarious position regarding your finances, it may be a sensible plan to
contact a registered debt counsellor. He will see that you are actually over-indebted by
checking your financial statements. Once this is established, he will guide you through the
process. He will liaise with your creditors in your behalf, finalizing a new repayment plan. You will make one monthly payment and a payment distribution agency will pay your creditors on
your behalf.

It is a straightforward procedure but requires complete commitment on your part. Following
the steps will ensure that you can become debt-free.

Do you need assistance with debt review? Speak to a consultant at One Debt today.