Debt can be crippling. If you’ve ever experienced the weight of debt, you’ll understand what we’re saying. Fortunately, there is hope. The debt review process was created for this very reason.
The Debt Review Process Provides the Ultimate Legal Protection
The debt review process was created by the law in South Africa to help people handle their debt. Debt review is available to those who are unable to fulfil their financial obligations on time. It is also relevant to those whose total debt repayments are higher than their income after subtracting their living expenses.
If you find yourself in a situation where your debt is out of control, consider what debt review can do for you. There is no need to face overwhelming debt alone when help is available.
What the Debt Review Process Involves
The debt review process involves consulting with a debt counsellor who is registered under the National Credit Act 34 of 2005. When you start the debt review process, the debt counsellor assesses your financial situation and creates a personalised repayment plan. They negotiate with your creditors on your behalf to reduce interest rates, extend payment terms, and waive additional fees or charges.
You only need to make one monthly payment to the debt counsellor, who then distributes the funds to your creditors. The goal of debt review is to protect your rights as a consumer while ensuring that your creditors receive payment.
How the Debt Review Process Works
The process is much simpler (and less daunting) than you might expect. It is summarised in a few easy steps:
Step 1: Request a Free Consultation from NDC
One of our professional consultants at National Debt Counsellors contacts you and takes you through a free financial assessment. Don’t worry, this is completely confidential!
Step 2: Complete Your Application Form
If you qualify for debt review, we send you an application form (Form 16) to complete and sign.
Step 3: We Notify Your Creditors
We notify your creditors that you’ve applied for debt review. From here, you and your assets are immediately protected under the National Credit Act.
Step 4: We Negotiate a New Payment Plan for You
This is where the magic happens. We negotiate your loan agreements with your credit providers and restructure your repayments to an amount that’s affordable for you.
Step 5: Pay a Single, Affordable Monthly Instalment
Once we’ve handled the above steps for you, you begin paying one easy monthly instalment via an accredited PDA (Payment Distribution Authority), which distributes the funds to your credit providers.
Step 6: We Make the Approved Plan an Order of the Court
Our panel of Attorneys apply to the Magistrates Court on your behalf to make your restructured repayment plan an official order of the court and ensure you remain protected during the process.
Step 7: Your Debt is Paid Off and Your Credit Record is Clear!
Slowly but surely, you’ll pay off your debt. Once it’s repaid, we issue a clearance certificate and notify the credit bureaus to clear your credit record. You are now able to live in financial freedom! Cue the budget-friendly celebration.
Now that we’ve covered in detail what debt review is, let’s look at how you can complete the process and attain your financial freedom.
The Benefits of Debt Review
The debt review process has a lot of benefits, the most significant is that it allows you to repay your debt in a structured and sustainable way. Your debt counsellor assesses your budget, considers essential expenditures such as groceries, housing, education, and transport, and then works out how much you can afford to pay going forward.
Here are some of the other main reasons you should consider working with us to help clear your debt through this process:
No More High Amounts
Your monthly repayments are reduced to an amount you can afford, which helps you slowly but surely step out of debt and into financial freedom.
We Cover You (and your goods)
We provide immediate protection to you and your assets (including your house and car), so there’s no need to worry when you’re under the debt review process.
We’re the Ultimate Middleman
We negotiate with your credit providers directly, so you don’t receive any more harassing phone calls.
More Peace, Less Stress
We negotiate lower interest rates on your behalf, and we extend your repayment terms. This means you get a bit more breathing room as you begin moving towards more financial stability.
We’re Comprehensive from Start to Finish
Once you’ve cleared your debt, we apply to clear your credit report. So, all you must do throughout the process is make your payments. We do everything else on your behalf!
The ultimate reason to apply for debt review is simply to get on a better financial wicket overall. To live debt-free is the goal, and with debt review it becomes possible.
The Most Important Benefit of Debt Review
The biggest benefit of the debt review process is that it’s a legal process, which means it provides legal protection. Once you’re in it, your creditors can’t take legal action against you. This means you’re protected from repossessions, legal action, and garnishee orders (garnishee orders allow creditors to get a portion of your salary or wages directly from your employer before you are paid).
Why the Debt Review Process Is Your Best Option
For individual consumers, there are alternative debt counselling processes that can be considered. One option is a voluntary debt review. As the name suggests, it is like debt review. All your debt is also consolidated into one payment, but the process is completely voluntary.
Use this process when your accounts are not in arrears, but you want to prevent yourself from becoming over-indebted. Because it is voluntary, it provides flexibility, and you can end it at any time.
Get the Ultimate Protection while Seeking Debt Relief
Debt review is ideal if you’re already over-indebted and need guidance and support to achieve debt relief while protecting your belongings from being repossessed. The formal process results in a Court Order that establishes new payment agreements and ensures that most of your assets are protected.
Seek Expert Advice to Handle Your Debt
National Debt Counsellors assist many South Africans each month in regaining financial freedom and becoming debt-free. We are experts when it comes to debt and the debt review process. So, if your debt is spiralling out of control and you are feeling overwhelmed, then talk to us. We are trained debt counsellors who can give you helpful advice and support and ensure that you are legally protected while working towards attaining debt relief.
Our friendly team will clarify the process for you so that you are not left in the dark when it comes to your debt. Don’t deal with your debt on your own. We at National Debt Counsellors can guide you to a debt-free life. Reach out to us today and we’ll assess your financial situation free of charge, with no obligations.
