What is Debt Review?
The New Act created a way for consumers with Debt problems to repay their debt much better. The process is called Debt Review. The Debt Review Process is the way for consumers to manage their Debt. On the other hand, Debt Restructuring provides the consumer with Debt Relief. The National Credit Regulator provides Consumers with trained Debt Counsellors, who advise them of their rights. They also negotiate Reduced Installments and interest rates with their Credit Providers. So, Debt Counselling is in other words called Debt Review.
The National Credit Act lays out the Debt Review process. As a result, Debt Review is a formal process. Consumers who cannot afford to pay their debt, have to apply for Debt Review in order to get relief. Consumers have to make use of the services of a Registered Debt Dounsellor for guidance in this process. To make sure if your Debt Counsellor is registered, please click here. The Debt Counsellor assess the consumer’s situation and help completing an application form to do an proper evaluation. The Debt Counsellor request from each Credit Provider all Certificates of balance. Thereafter, the Credit Providers issue the Debt Counsellor, within a certain period of time, the outstanding balance on each account. They have to declare the interest rates, monthly fees and the exact monthly installment.
With all information in hand, the Debt Counsellor do a proper investigation. This will determine whether or not the consumer is Over Indebted. Firstly, the Debt Counsellor looks at the Consumers net income. Secondly, he will deduct all living expenses. Lastly, this leaves the consumer with an amount available which he can afford to pay his monthly Debt. If the available amount is less than which is required to pay his monthly debt, then the consumer is over indebted. This entitle the consumer to apply for debt review. If the money available is more or equal to the monthly debt, the consumer is not Over Indebted. Such Consumers can become over indebted in the near future. Debt Counselors have to keep this in mind.
The Debt Counsellor will notify all Creditors once it has been determined that the consumer is over indebted. He will help the Consumer with a proposal to all Creditors and start the negotiation process. The Creditors will then either accept the proposals or come with their counter proposals. We only make use of Attorneys, registered with the DCASA to represent you in Court. The Magistrate’s Court have the discretion to either approve or decline the proposals.
The benefit of the formal process is that the Debt Counsellor knows the Act. He will assists the Consumer and knows the skills how to negotiate with Creditors. Furthermore, this offers a way of protecting the consumers assets and avoid costly Judgments. With the consent of all the Creditors The Magistrate’s Court will grant an Order to rearrange the Debt. Consumers have to remember to use NCR accredited debt counsellors only. They should act immediately and not ignore their debt problem as it will not go away on its own. Consumers have to seek help before Creditors start with legal action. Consumers who are under Debt Review must ask for regular statements and monitor their balances. Thousands of South African Consumer’s have used this process to pay off their Debt and . This has made it possible to pay their Debt and still have enough funds to support their families.
Over indebtedness is overwhelming. So, the solution is Debt Review. Get professional Debt advice and talk to a Debt Counsellor as soon as possible. We offer Innovative Debt Solutions that will save you money. With more than 10 experience in the industry we can help you!!, for a better tomorrow!!
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