If there’s one thing that everybody understands; it’s debt. Sure, not everyone may understand the ins and outs of it and how best to avoid it, but we’re positive that everyone understands that not being able to pay back an amount of money that you owe is not good. That’s why we’re here to provide some debt guidance to you!
What Should You Do if You’re in Debt?
If you’ve lost control of your finances and you owe a lot of people a lot of money, you probably realise that you are officially in debt. No matter how hard you try settle your payments, the amounts keep increasing and you continue to slip into debt.
So, what can you do if this is your current situation? We’ve got good news; it’s called debt review. You’re going to want to learn more about this debt guidance model if you’d like to become debt-free!
Debt Review, Explained
Debt review, in short, is a formal debt restructuring process for South Africans who are struggling to make their month-end payments. 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.
The debt review process was created with you, the consumer, in mind. It’s highly regulated and can only be conducted by a National Credit Regulator (‘NCR’) qualified Debt Counsellor. The process allows the debt counsellor to renegotiate and restructure your debt to an amount that you can afford each month, with the ultimate goal of helping you pay off your debt in full.
All that’s required of you during the debt review process is to continue paying your reduced monthly instalments, and once your plan is completed and your debt is paid off, your credit record will be cleared, and you can start living debt-free.
This sounds like the dream, which it is, but as we’ve stated, you can’t go through the debt review process alone. You need help.
Who You Gonna Call?
Like any hard thing in life, it’s always better when someone does it with you. This is where we come in. We come alongside you through the debt review process and make sure that we’re encouraging you, supporting you, and ultimately helping you get rid of your debt.
This debt guidance process has a lot of benefits, the most significant is that it allows you to repay your debt in a structured and sustainable way. We will assess your budget, consider essential expenditures such as groceries, housing, education, and transport, and then work out how much you can afford to pay going forward.
How Debt Review Works with National Debt Counsellors
The process is much simpler than you might expect. Here’s what you can expect when you work with us:
Step 1: Request a Free Consultation
One of our professional consultants contacts you and takes you through a free, no-obligation financial assessment to determine whether you qualify to go under debt review. Don’t worry, this process is completely confidential!
Step 2: Complete Your Application Form
If you qualify for the debt review process, we send you an application form (Form 16) to complete and sign.
Step 3: We Notify Your Creditors
We then notify your creditors that you’ve applied to go under 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. This means you’ll no longer struggle to make payments each month!
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. 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! Cue the budget-friendly celebration.
Look No Further for Debt Guidance
At National Debt Counsellors, we believe that you can live debt-free. There’s always hope, which is why we assist everyday South Africans who find themselves struggling to meet their monthly financial obligations. Our Debt Counsellors are registered with the National Credit Regulator. We offer you a free, no-obligation assessment of your financial situation.
If you’re struggling under the weight of your debts, it’s time to get some help. Let’s work together and strive to see you live debt-free!
