Debt Review Is A Good Idea And Here Is Why

Do you feel overwhelmed when you look at your finances?

Millions of people are struggling financially every single month. In fact, according to the latest statistics from the National Credit Regulator, almost 50% of credit-active consumers have impaired records.

Many aspects of personal finance and debt can be confusing. Most of the time, you feel like you need a degree just to understand the T’s & C’s on your credit contract. 

Managing your debt effectively and knowing what to do and what not to do can be confusing. 

But it doesn’t need to be.

Here is why debt review is a good idea…

It makes sense to talk to an expert about the various options available to you if you are having problems paying all your credit providers.

The debt review process is designed for rehabilitation. It offers you an opportunity to wipe clean your slate and rebuild a clean credit record. The process was introduced in 2007 by the National Credit Regulator.

Debt review is designed to protect struggling consumers from becoming blacklisted and at risk of repossession. This would essentially leave them in a worse position because they are unable to meet their current debt repayments.

Sometimes it’s not possible to reduce your living costs any further. The only other option is to reduce your debt repayments. And that is where Debt Review can help. 

To do this, you’ll need a registered Debt Counsellor such as Debt Rescue who can negotiate with creditors on your behalf.

Debt review legislation is designed to protect consumers by ensuring they have affordable legal protection from credit providers in the case you ever become overburdened by debt.

Here is a list of 10 benefits of debt review:

1. Your monthly budget will ensure that you are able to afford your living expenses such as food, rent and school fees. .
2. Your debt counsellor will recommend ways of saving money and cutting costs.
3. All debt repayments will be consolidated into one affordable monthly repayment.
4. You will only have one debit order for all your debt. This makes it easier to manage your finances  knowing that only one debit order needs to  go off every month.
5. You will no longer be harassed by your credit providers demanding payment. These calls will now go to your debt counsellor.
6. All your assets such as your home, vehicle furniture will be protected from repossession.
7. There are no upfront fees payable to your debt counsellor. All fees will be worked into your repayment plan.
8. When you’ve completed the debt review process and you’ve received your clearance certificate, your credit score will be set back to zero. If you’re unsure what your current credit score is you can check it here for free.
9. There is no permanent record on your credit report of going under debt review once all your debt has been settled and a clearance certificate has been issued.
10. Provides you with peace of mind knowing all your debt has been covered each month.

Debt review has been a highly successful and affordable solution for thousands of South Africans suffering from over-indebtedness. 

You can complete our online calculator to see what you could save per month.

Regulations around debt review can only protect you if you act… If your creditors take action before you do, it will be very difficult to get the financial relief you need. 

Take the step now and contact a debt counsellor in order to provide you with the best financial advice.