Is Debt Review Worth Considering

If you find yourself drowning in debt and it feels as there is no way out, think about debt
review. A study conducted by Genesis Analytics, in conjunction with the Financial Sector
conduct Authority (FSCA) found that more than 50% of South Africans have too much debt.
This, in turn, has resulted in 48% of all borrowers with poor credit records.

The numbers are high, and over-indebtedness remains a huge challenge in South Africa.
There is, however, a way that can guide you towards becoming debt free. Debt review, or
debt counselling has been a lifeline for many over-indebted South Africans. The process has
allowed them to take control of their finances, pay off their debt and learn how to manage
their money more carefully.

Debt review – what is it?

Debt review, or debt counselling is a debt relief measure designed to help over-indebted
consumers to take financial control of their debt. Simply put, it assists the over-indebted
person to get out of debt.
It first came into being in 2007w hen it was introduced by the National Credit Act. One of its
aims was to prevent consumers from being blacklisted and subsequently having to deal with
the resulting consequences.

How does it work?

  • Schedule an appointment with a certified debt counsellor.
  • He’ll determine if you are over-indebted and consequently, can place you under debt
  • Your credit providers are informed of this as well as the credit bureau.
  • Your debt counsellor determines how much you can pay each month, restructures
    your repayment plan and negotiates on your behalf with your credit providers.
  • Your repayment plan becomes a court order.
  • You’ll pay one amount each month to a payment distribution agency who pays your
    credit providers on your behalf.
  • Once all your debt is repaid, you’ll receive a clearance certificate, and the credit bureau will be notified to clear your record.

For over-indebted consumers, debt review is a process that can bring peace of mind. You’ll
be able to pay off all your debt and be stress-free.

Interested in finding out more about debt review? Speak to One Debt today for more