Is Debt Review Right for Me

Many consumers in South Africa struggle to make ends meet as a result of overwhelming
debt. The cause of large debt can be from the loss of a job, or circumstances beyond one’s
control. Furthermore, many consumers are low income earners and rely heavily on credit to
see to their basic needs. If you are drowning in debt but want to take steps to start clearing
this debt, debt review is an option worth considering.

What is it?

Debt review is a formal debt rehabilitation program that aims to help consumers who are
genuinely struggling to generate enough income to make ends meet.
The National Credit Act came into being in 2007. It aims to, among others, help consumers
be free of over-indebtedness.

The process:

A consumer reaches out to a debt counsellor. He then determines whether you are over-
indebted and can help towards a structured repayment plan.
The debt counsellor will communicate directly with your credit providers to negotiate
interest rates and repayment terms with the aim of reducing them.
Once your payment plan is finalised and approved, you will be able to start systematically
paying off your debt in agreed upon instalments.

Points to remember:

While debt review can be a lifeline for an over-indebted consumer, it is not a process that
allows the consumer to continue with a lavish lifestyle. Once you’ve entered debt review,
you cannot apply for new credit. In addition, you cannot leave debt review until all the debts
are settled.

Debt review is a statutory process with prescribed timelines that must be adhered to.
However, debt review does not stay on your permanent credit record. Once you have paid
off all your debt, it will be removed from your permanent record.

As with everything that has a good result, there is hard work, commitment and discipline
involved. You’ll need to make some sacrifices in order to achieve your debt-free goal.
However, debt review means less stress regarding your debt and still ensures you have
money for your living expenses. You too, can start over, free from the burden of
overwhelming debt.

Find out more about debt review – speak to a consultant at One Debt today.