I’m looking for the best solution when your monthly net income no longer covers all expenses like credit cards and loans.
Thank you for your question.
We help over-indebted South Africans through debt review. Debt review is not a consolidation loan.
With consolidation loans you only shift your debt from one place to another. Most people will not qualify for a consolidation loan. There are two ways in which you can consolidate your debt. If you own a property and have liquidity in the property; meaning that your property is worth more than what you still owe the bank. You can use that to finance your other debt.
The other way to consolidate is to take out a consolidation loan at the bank. This typically has a limit of R50 000 and the consumer must be able to afford the instalment on top of their existing debt instalments. For most people R50 000 is not enough anyway and the interest and fee charges are also extremely high. With this consolidation loan your creditor will do an affordability assessment, and will only give you the loan if you can afford double the amount of your debt.
Unlike consolidation loans, which have very strict requirements (and at the end leaves you with more debt) debt review restructures your credit obligations to an affordable, consolidated, repayment plan.
How debt review works:
Debt review is the process that reworks your debt payments into an affordable, consolidated repayment plan. Your repayment plan is formulated in such a way that it enables you to pay for essential living costs, giving you immediate breathing space. Your repayment plan is agreed upon by your creditors (we negotiate with them on your behalf), regulated by the National Credit Act and authorised through a court order. This means that the debt review process legally protects you, and your assets, against creditors who want to take legal action against you. Once your debt review process is completed you will receive a clearance certificate. Meaning your financial slate is wiped clean, your debt worries are in the past, and you can start living your new beginning.
For more information about debt review you are welcome to fill in our online contact form here.
Once submitted our contact centre will be in touch with you shortly to discuss your options.
Have a great day.