Debt payments have been the one niggling constant that South Africans have struggled to cope with. It is estimated that the South African spends a massive 76% of their income on paying off debts. What’s even worse is that a large section of that population regularly adds on more debt to their existing debt portfolio.
From car and house payments to credit cards and personal loans, every single form of debt is a drain on your resources and to help people overcome their debt issues, the South African government decided to introduce the Debt Review process, in 2007, as part of the National Credit Act or NCA.
The idea of a debt review is to get counselling on how to cope with your debt and, then, create a plan of action to get rid of that entire debt. The best thing about being in a debt counselling session is that organisations cannot take legal action against you.
How a Debt Review Works
The debt review process begins with the process of finding a counsellor through the National Credit Regulator. After providing the necessary documentation, pay slips and monthly repayment details to your counsellor, they will work out the depth of your debt problems and create a solution for you.
Their role is to find out if you can afford to make your payments with your current income or whether you’ll need to make adjustments to your life based on the data you’ve provided them with. Once you have that understanding, you can actually apply for debt counselling.
Why get a Debt Review?
There are many benefits to undergoing a debt review. The primary reason for going through the process is to qualify for debt counselling. Not only do you get an idea of the kind of problems you have to deal with, in terms of debt repayment, but you also get a clear understanding of what steps you need to take to clear out that debt.
The biggest benefit of debt counselling is that you are inducted into a programme where a repayment proposal is placed by your counsellor, on your behalf, to the organisations that you are indebted to. If everyone agrees to the repayment plan, you will end up with a more manageable repayment plan that you keep paying until your debts are cleared.
At One Debt, we help you solve your debt issues by showing you the way out – call us today to transform your life!