What is Debt Review?
Debt Review is a legislative remedy that assists over-indebted consumers. The National Credit Act introduced a legal relief for over-indebted consumers by negotiating with credit providers to reduce your monthly repayments.
The process entails your attorney, who is also a Debt Counsellor, contacting all your creditors. These negotiations with your creditors are done on your behalf by the registered Debt Counsellor.
The process is completed when our attorneys get a court order on your behalf.
Who can apply?
Any person with a monthly income or commission who is:
-Unable to pay their debts
-Unable repay their home-loans
-Need their monthly repayments reduced
-Has skipped monthly repayments
-Is likely to lose their vehicles
-Who has or is likely to cancel their policies due to inability to pay premiums
-Who has to use a credit card or overdraft facility to survive
How does it work?
- You complete the application form and submit
- Copy of your Identity book
- Proof of income – Payslip, Commission Statement
- Most recent statements from creditors (clothing accounts, credit cards, retail accounts, vehicle finance, home loan, personal loans)
- Proof of all expenses – Utility account, cell phone statement, school fees etc.
- The next step is to do a financial assessment to determine if you qualify by calculating:
- Income less – total expenses – monthly repayments
- If your monthly living expenses are more than your monthly income, you may qualify for debt review
- Once the above is complete, your creditors will be notified, and our attorneys will get an order from the Magistrate’s Court
- After you have paid your debts, we will issue a Clearance Certificate
What are the benefits of Debt Review?
- Up to 50% reduction in your monthly debt repayments
- Your creditors will not harass you with calls again, they will speak to us!
- A court order protects your assets
- You pay one reduced monthly instalment for all your debts
- You sleep better at night
- You can settle your debts on time
Myths and misconceptions about debt review
Myth: Creditors will never grant you credit again.
Truth: While you are under debt review, you will not get credit until you have repaid your outstanding debts, once you have done so, we will issue a Clearance Certificate, and you can apply for debt easily
Myth: Your creditors can still take your assets.
Truth: A court order protects you from your creditors. The only time when they will attach you assets is when you are in breach of the court order by not paying monthly
Myth: You never finish paying off your debts.
Truth: This is not true when you are under debt review, you are even able to pay your debts faster.