Requirements to qualify for Debt Review

Debt review is a process of debt counseling in South Africa regulated by the National Credit Act. It provides an alternative solution to those facing unmanageable debts, enabling them to pay back their creditors over time while protecting them from legal action or repossession of assets. Qualifying for debt review requires meeting certain criteria and understanding what it entails for both parties involved.

One must meet certain requirements in order to qualify for debt review under the National Credit Act. Firstly, one’s total unsecured debt needs to be more than R50 000. Secondly, the individual should not have any pending credit applications with other lenders as this affects the outcome of the debt application being reviewed. Thirdly, all documents associated with one’s finances including income statements and bank statements need to be provided prior to applying for a debt review process. Lastly, one needs to attend at least six counseling sessions before getting approval for the debt review program which helps assess how much they can realistically afford to pay back their creditors on a monthly basis.

The potential benefits that come along with qualifying for a debt review are numerous. Debtors are legally protected against further legal action by creditors while on the program and also benefit from reduced interest rates and payment plans tailored specifically to their financial situation; allowing them to repay their debts in manageable chunks without having additional funds burden added onto already existing expenses. Additionally, after successful completion of the repayment plan, blacklisted individuals get access to new lines of credit again while restoring their good standing with banks and lenders who previously refused loans due to poor credit history.

Debt review has been designed by regulators such as The National Credit Regulator (NCR) so that borrowers can gain relief from overwhelming amounts of unpaid debts without resorting drastic measures like bankruptcy or liquidation – providing hope when there had seemed none before. With careful consideration given towards eligibility requirements by applicants and close monitoring throughout each stage of the process, many have seen real tangible results thanks largely due its structured approach backed up by protective legislation like The National Credit Act.

Below are the DOCUMENTS the clients need to sign and return to us:    #

  • Form 16
  • Full power of attorney
  • Cancellation of debit order forms
  • ID copy
  • Latest pay slip or 6-month bank statement
  • Proof of residential address

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