There is no easy way to say it, debt can literally steal your life. It creeps in slowly, a credit card swipe here, a loan there, and those emergency expenses that you did not see coming. Before long, you are living in survival mode, pretending everything is okay. In reality, you are not okay, and your debt has become a nightmare.
Here is the truth, help does exist. You can have a life that is debt-free. You are not permanently stuck in your debt. A powerful and completely legally regulated process, Debt Review (commonly known as debt counselling), is available to help you get your finances back on track.
In our latest Debt Rescue blog, we will talk frankly about what debt does to a person, how debt review can make an actual difference in your life, and how to budget whilst you are in the process of debt review.
The Ripple Effect of Debt on your Everyday Life
When you are drowning in your monthly debt repayments, life becomes reactive. You are constantly trying to play catch-up. Paying what you can, when you can, if you can.
You might feel ashamed and guilty. You probably have some level of anxiety that can get so bad that it keeps you awake at night. The emotional toll this has on anyone is truly immense. Debt can ruin a marriage, it can reduce your work productivity, and it can take away your ability to focus on your long-term goals, such as your retirement.
Debt doesn’t just live on your credit report. Debt can be seen in your fridge, when the groceries you buy are fewer and cheaper. There are many signs of debt. Debt is when you can’t afford to get to work in the mornings. Debt is when you have to cancel your medical aid because you just don’t have enough money left. Debt is also those fears about losing your home, losing your car, losing it all.
We carry this silently because talking about it openly feels like a taboo, but it doesn’t have to be.
Debt Review is a Reset Button, Not a Punishment
If you are sitting at home or at work, and you are too scared to look at your bank statement, please know that it only takes one telephone call or email to get the help you need. If you have reached the point where your debt far exceeds your income, it just takes one telephone call or email to change it all. If creditors are harassing you day and night, it might be time for you to consider debt review.
Debt Review, also known as debt counselling, is a legal process governed by the National Credit Act. It was introduced in 2007 to help over-indebted consumers. Under debt review, your accredited debt counsellor will review all your finances, and negotiate with your creditors on your behalf. Your monthly debt repayments will be consolidated into one reduced payment, based on what you can afford.
Debt review is not a punishment. Debt review is a process that protects you, your future, and your livelihood.
Here is what makes debt review life-changing:
Immediate Financial Relief
- From the moment you are accepted into the debt review process, the pressure starts lifting.
- Your new monthly debt repayment is lower, manageable and realistic.
- For many of our clients, this is the first time in months, or even years, where their lives start to feel normal again.
You will no Longer be Harassed by Creditors
- Your debt counsellor will notify your creditors and the credit bureaus that you are being placed under debt review.
- This means that the constant calls, threatening emails, and stress inducing SMSes finally stop.
- You are legally protected, and creditors are not allowed to contact you directly or take legal action against you while under debt review.
Your Assets are Protected under Debt Review
Our homes and vehicles are our most valuable possessions.
- Debt review ensures that there is a legal shield around your assets, preventing repossessions from creditors. As long as you keep to your monthly debt repayment plan, your assets will remain legally protected.
This is a structured process to becoming debt-free
- Unlike consolidation loans, debt review is a long term solution that works – it gets you out of debt without you needing to take on more debt!.
- Your debt counsellor will explain the entire process upfront, including the duration of the debt review process, usually between 3 to 5 years, depending on your unique circumstances and the debt amount owed.
- After all your debt is paid back, you will receive an official clearance certificate, and your credit record will be updated to reflect that you are officially debt- free.
Budgeting Tips for Life During Debt Review
Debt review ensures that your basic living expenses are covered, which means that you are not left without any money available while repaying your debt. That said, managing your money and sticking to a budget will make this process smoother, and you will be able in the long run to pay off your debt faster.
1. Stick to the Budget Set Out by Your Debt Counsellor
During the debt review process, your debt counsellor helps you to create a new monthly budget that prioritises essential living costs. This plan is designed to help you cover what matters most, while you are repaying your debt. It may seem impossible, but try not to be tempted to spend more than this plan allows for.
2. Track your money
In order for you to improve your budget you need to fully understand it. Keep a daily record of what you spend, from petrol, to food, snacks, entertainment and yes even your data bundles. Being aware of where your money goes, helps spot any wasteful spending.
3. Review your budget and adjust
Your financial situation might change from month to month. By tracking your spending, you can adjust your needs accordingly. If your situation changes significantly like job loss, or you might have a new income, speak to your debt counsellor immediately. They will be able to assist you.
Debt doesn’t Have to Control You
Debt does not have to be the end of your story. With the right support from dedicated debt counsellors, and the willingness to take that first brave step of contacting us, Debt Rescue can help you rewrite your future.
Ask for help if your debt is becoming unmanageable. There is no shame in taking charge of your life, in fact it is probably the most powerful decision you will ever make.
Contact us today, for a FREE no-obligation assessment, and find out how we can assist you in becoming debt free.
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