There are two things that you get out of a good debt review? you get the path you need to follow to escape the debt trap you are in and you also get the mantra required to stay out of debt! According to a report issued by the World Bank, for 2014, almost 86% of South Africans take out a loan in some form or another. Whether it is to pay off some emergency bills, buy something or just live day-to-day life, a very large percentage of people in South Africa have some form of debt hanging over them.
However, that figure isnt nearly as disturbing as the fact that almost 30% of South Africans feel that they will not be able to pay their next debt payment ? in other words, they are going to default on their debt payment.
Heres the kicker ? as it turns out, only 52% of those debt-laden individuals took on loans to pay off a home, a farm or a business, their educational fees or their healthcare costs. Almost 48% seem to have taken on loans to pay for their day-to-day living expenses! Are you one of them?
Do You need a Debt Review?
A debt review is one of the first steps in getting rid of debt. It isnt a magic wand, but it is definitely the closest thing you will get. A debt review gives you an accurate understanding of your financial position and charts a plan to work your way out of debt. Whats best is that a debt review will give you some breathing room in your battle against debt.
In 2007, the South African government introduced the National Credit Act (NCA), that allowed debt-ridden individuals to undergo counselling that would not only help them get out of debt, but keep legal action at bay. The idea of the debt review is to give you a financial plan that you, with your current income, can actually pay back while living a regular life.
How do you Get a Debt Review
A debt review has a certain application and qualification process ? the first thing is that before you apply for a debt review, you need to hold a regular job to be able to meet the repayment plan that will be laid out for you. Once you have that checked off, the next thing to do is provide your debt counsellor ? and you can find one easily from the registered debt counsellors listed with the National Credit Regulator ? with your financial documents, details about your debt, and your monthly payment details.
Armed with everything, the debt counsellor will determine whether you are eligible for a debt review, or counselling. If you qualify, you get rid of any legal action fears you might hold as people undergoing debt counselling cannot be hounded to pay back their debts. More importantly, you will get a debt repayment plan that you can afford. Contact a registered debt counsellor like OneDebt and start living a better, debt-free life!