What is debt review

Debt review is a process assisting all South African citizens who is over-indebted by reducing their total monthly  installments up to 50% in according to the customers household budget or expenses.

What is debt review

    • Instituted in June 2007 with the implementation of the National Credit Act 34 of 2005, Debt counseling is a highly effective credit management solution focused on helping indebted individuals to meet their monthly debt commitments in a way that suits both creditors and customer freeing up money for their monthly essential daily living expenses.
    • It offers protection from creditors (IF LEGAL ACTION HAS NOT BEEN TAKEN PRIOR TO DEBT COUNSELLING APPLICATION) and the long-term effect of being places into personal administration and having garnishee orders taken against your salary.
    • Debt Counseling is a relatively new profession in South Africa, but has been proven to be a great success in the USA and the UK. Debt counseling gives a consumer who is over-indebted a second chance of debt repayment. Debt counseling does not result in the debt being written off and consumers do not have to pay their debt
    • In the year 2012 already it was determined that there are 19.6 million active credit consumers in SA of 10.38 million are in good credit standing. This means that 9.2 million credit active consumers have impaired credit records and struggle financially to pay their debts. Currently, more than half of all consumers owe 75% or more of their income to creditors.
    • Creditors has been successfully receiving billions from debt review payments being paid over to them through the debt review process
    • A registered Debt Counselor will advise a consumer on ways to manage his/her living expenses through a budget drafted by the debt counselor. The Debt Counselor will set aside a certain amount of income for the consumer’s necessities such as food, school fees, transport costs etc, and the remainder of the money is left to pay the consumer’s debts.  This will lead to the consumer being rehabilitated into the credit marker again once all accounts has been settled and paid in full.

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