Will You Benefit From Debt Review?

There are a huge number of South Africans who are struggling with debt. The Covid-19
pandemic certainly added to our country’s debt, and there a still a great number of people
who are over indebted. Over indebted means being unable to meet monthly financial
obligations. A person is over indebted if he is unable to pay his accounts on time according
to his credit agreement.

What is Debt Review?

Debt Review is an option for relief for those who are over indebted. It is also called Debt
Counselling. The idea behind this is to help you fix your debt in such a manner that it is both
responsible and rehabilitative. It is a formal, structured, legal process. The entire process is
regulated by National Credit Regulator. This falls under the National Credit Act of South

How Does it Work?

If you have made the decision to undergo debt review, you’ll first need to complete an
assessment to find out if you qualify. Should you qualify, it means that you will have the
protection of the NCA. You’ll be assigned a registered debt counsellor and he will
restructure your debt in a way that is more manageable. The process is formalised and you
will have to pay one monthly amount that is then distributed to your creditors in your
behalf. You have the responsibility to meet the payment criteria until such time that your
debt is cleared. Once you have met all your obligations, you’ll receive a clearance certificate.
The clearance certificate is then sent to the credit bureaus who will then ‘unflag’ you as
being in arrears with your debt payments. This in turn, allows you to rebuild a new, healthy
credit score.

Benefits of Debt Review

Recognising that you have a debt problem is the first step in finding a solution. Debt review
can help you manage your debt in an affordable and responsible manner, while allowing you
to provide for your necessary living expenses. It is also a way in which you can take
responsibility for your debt.

For more details in how debt review can benefit you, speak to One Debt today.