Many South African consumers are feeling the effects of the rising cost of living. As such, many
consumers are finding it challenging to meet their monthly financial obligations. The Financial
Sector Conduct Authority (FSCA) stated in its April 2022 report that over 50% of South Africa’s
consumers overindebted. That number is staggering. And, given that was a year ago, and that
interest rates have, in the interim, risen, the numbers are likely to be much higher.
If you are battling to make your monthly repayments and feel as though you are in a never-
ending downward debt spiral, it is prudent to get help before it worsens. This is where Debt
Review or, as it is also known, Debt Counselling, can help you.
- Make contact. The first step is to contact a registered debt counsellor. During this
meeting he will determine if you are overindebted by looking at your monthly income
and the debt you have.
- Negotiate with Creditors. The debt counsellor will approach and inform your creditors
that you are applying for debt review. Then he will negotiate your interest rates and
repayment terms with each creditor.
- New debt repayment plan. Your debt counsellor will develop a restructured repayment
plan. This means one monthly payment to a PDA that will cover all your creditors. The
PDA will pay on your behalf.
- Approval and start of new plan. Once your creditors provide their assent, the
- new repayment plan can begin.
Debt free. Once you have completed the process, you will be debt free. You will receive
a debt clearance certificate stating same.
The end result
Applying for the debt review process requires commitment and a willingness to make a
difference in your life. Debt review typically takes 5 years to complete. Thereafter, you will also
be able to manage your finances responsibly.
If you are overindebted and need assistance in becoming debt free, the debt review process is a
process well worth considering.
For guidance and assistance with debt review, speak to a consultant at One Debt today.