DebtSafe Blog

Time for Debt Review: Let’s Fix Your Debt

Even before COVID-19 debt has plagued many South Africans, but now with the pandemic raging on most of us have been placed in an impossible situation financially. Making it now the time to seriously consider debt relief options that are safe, proven and effective. Debt Review is such an option. Although Debt Review is not suitable for everyone, it is time to consider Debt Review when you are:

  • Over-indebted.
  • Still receiving some form of income (salary, UIF, social grants, pension, etc.)
  • Facing a very real chance to lose your house or car to repossession due to payments in arrears. 
  • Not able to pay all your debt obligations and basic living expenses. 
  • Unable to qualify for credit. 
  • Financially worse off after taking a payment holiday.

Are you able to relate to the above? You are not alone. Our recent statistics confirmed that due to our current crisis consumers are not able to keep up with payments. And the hard implications of this reality is that it’s only a matter of time before non-payment turns into repossession or legal action from creditors. 

Debt Review provides a financial lifeline when time is running out to fix your payments in arrears. Below is an important summary about Debt Review, what it is, how it helps to fix your debt and keep your assets safe. Now is the time to consider Debt Review to fix your debt.

What is Debt Review and how does it work?

Debt Review, also referred to as Debt Counselling, is a structured process to help fix your debt in a ‘rehabilitative’ and responsible manner. The whole process is regulated by the National Credit Regulator (NCR) – who is the watchdog of the credit industry – and falls under the National Credit Act (NCA) of South Africa. 

When you decide it is time for Debt Review, we will need to complete an assessment to see if you qualify. 

After it is determined that you qualify for Debt Review you can be guaranteed of the NCA’s protection. Meaning, your house and vehicle are protected from repossession for the duration for your Debt Review.

A registered Debt Counsellor will be appointed to you and will restructure your debt in a more manageable way and will communicate with you as you advance through the process until your finances are completely restored and you receive your Clearance Certificate (Form 19). This certificate will be sent to registered credit bureaus (by your Debt Counsellor) so that they can ‘unflag’ you from being in arrears with your debt payments and being under Debt Review. Which enables you to build a healthy credit score again. 

What are the benefits of Debt Review?

Debt Review has been around for a long time, during which a few myths around the process emerged. Below are the main benefits of Debt Review to clarify the preconceptions of this effective process:  

    • As soon as you qualify for Debt Review, your assets (like a house and car) are immediately protected.
    • Only for the duration of your Debt Review will you not be able to take on any additional debt. The process has a ‘rehabilitative spirit’ to help you lessen your debt. Adding more debt during this time will be counterproductive. The time it takes to complete Debt Review is unique to your situation, you can read more about how long your Debt Review will take here
    • Your Debt Counsellor negotiates with your creditors to lower your monthly instalment amounts. These amounts will be restructured to your new budget plan and one affordable monthly Debt Review repayment so that you can take care of your living expenses during this process. 
    • Debt Review is a strictly regulated process under the NCA. Debt Counsellors must be registered by the governing body, called the NCR, to ensure that your consumer rights stay protected.
    • When you complete the Debt Review process you can start building your credit score in a rehabilitative and sustainable manner. Meaning that you will be able to qualify for credit again. 

How can you apply for Debt Review?

DebtSafe offers a free assessment to check your current financial situation and evaluate whether you will qualify for Debt Review. 

DebtSafe’s registered team will assess your income, type of debt (secure/unsecured), the amount of your overall debt, living expenses, and your marital status. 

This assessment is free, no-obligation required. So, before you think you won’t be able to qualify, do the free assessment and find out if it is a safe and effective debt solution for you. 

There is currently no end in sight to this crisis. It is now the time to ensure you protect your house and vehicle from repossession, to ensure you take control over your debt and enjoy the comfort of knowing you can provide for your family’s necessities. Now is the time to seriously consider Debt Review.