As many as 10 million South Africans, or 40% of the credit-active population, find themselves burdened by unmanageable debt. This is a grim statistic, but true, nonetheless. For all this debt in our country, is there a solution? There must be. Fortunately, we know the best debt solution in South Africa.
What is the Solution to Debt in South Africa?
The solution is found in a process called debt review.
Debt review is a formal debt restructuring process for South Africans struggling to make ends meet at the end of each month. It was created under the National Credit Act 34 of 2005 (‘NCA’) and was the government’s answer to the rising problem of consumer debt and the chronic over-indebtedness that plagues many South Africans.
Debt review was built with you, the consumer, in mind, and is highly regulated and can only be conducted by an NCR qualified Debt Counsellor. The process allows a debt counsellor to renegotiate and restructure your debt to an amount that you can afford each month.
Your only requirement during the debt review process is to continue to pay your reduced monthly instalments, and once your plan is complete and your debt is paid off, your credit record is cleared, and you can start living debt-free.
Who Can Go Under Debt Review?
Anyone can apply for debt review, but unfortunately, not everyone qualifies for the process. To be accepted to go under debt review, you need to meet the following criteria:
You must be a South African citizen between the ages of 18 and 65 with a valid South African ID.
You must be over-indebted. That means you’re not able to cover your essential living expenses and monthly debt repayments from your income. This is determined by your debt counsellor upon review.
You must be employed and able to make monthly repayments while under debt review. Unfortunately, if you don’t earn a consistent monthly income, you won’t qualify for debt review.
We Can Provide You with the Solution You Need to Become Debt-Free
NDC exists to do everything we can to support you and help you become debt-free. We understand the seriousness of debt and the effects it has not only financially, but emotionally, physically, and mentally. We’re passionate about seeing people step into financial freedom, and the best way we’ve seen this happen is through our debt review process.
If you’re struggling to make your monthly debt repayments, there is hope for you! All you need to do is reach out to us today and we’ll walk you through the process.
Here is a summary of what you can expect when you work with us:
Step 1: Request a Free Consultation from National Debt Counsellors
One of our professional consultants contacts you and takes you through a no-obligation financial assessment to determine whether you’re over-indebted. Don’t worry, this process is completely confidential!
Step 2: We Notify Your Creditors & Negotiate a New Payment Plan for You
If you are over-indebted, we notify your creditors that you’ve applied to go under debt review. You and your assets are immediately protected under the National Credit Act. We also negotiate your loan agreements with your credit providers and restructure your repayments to an amount that’s affordable for you. This means you’ll no longer struggle to make payments each month!
Step 3: 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 4: 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 5: Your Debt is Paid Off and Your Credit Record is Clear!
Slowly but surely, you’ll pay off your debt. Hooray! Once it’s repaid, we issue you a clearance certificate and notify the credit bureaus to clear your credit record. You are now able to live in financial freedom!
Why Debt Review with National Debt Counsellors is the Best Debt Solution in South Africa
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 consultant 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:
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. At National Debt Counsellors, our team is registered with the National Credit Regulator and offers you a no-obligation, free assessment of your financial situation.
Our reputation for providing exceptional service is only enhanced by the great relationships we’ve cultivated with all the major credit providers in South Africa. This gives us confidence to negotiate the best payment plan to suit your financial needs and ensures that we protect you and your assets. Reach out today, your financial freedom is waiting!