Debt counseling is one of the debt relief options accessible in South Africa, as outlined in the National Credit Act. This method is designed to help over-indebted consumers who are suffering with debt by providing budget guidance, negotiating with credit issuers for lower payments, and debt restructuring.
How does debt consolidation work in South Africa?
Debt rescue is a process in which a debt counselor assists you in budgeting and repaying your obligations at a more manageable rate. Your debt counselor considers all of your debt and negotiates with your creditors to reduce your monthly repayment as well as lower your interest rates, so you pay less each month.
In South Africa, how long does Debt Review remain on your name?
The length of the debt review process is determined by a variety of factors, including the amount of debt you have and how much you can afford to repay, among others. It usually takes between 36 and 60 months to complete the process, be certified debt-free, and receive your clearance certificate.
How does debt consolidation work?
Debts are being reviewed. Hiring a debt counsellor will cost you money, but it’s a little amount to pay to get your finances back on track. Your counsellor will examine all of your debts and negotiate with your creditors for a lower payback rate and even better repayment terms.
How long does debt consolidation last?
From three to five years. Debt counselling often lasts three to five years, depending on the amount of debt, the agreement negotiated by the debt counsellor, and what you can afford to pay each month.
Do you pay for debt consolidation?
You pay the debt counselor a fee. Debt counselors perform a crucial service and are compensated for it. Fees include an application charge (R57.50), which you may be required to pay in advance, as well as an ongoing administrative fee. Typically, the administrative fee is deducted from your monthly payment.
