Debt review: What is it?
The National Credit Regulator introduced debt review, commonly referred to as debt counseling, as a legal procedure. This procedure was established to assist South Africans who are having trouble paying off their debt. Customers’ financial obligations are reorganized, and interest rates are lowered to make it easier for them to make their monthly payments.
How does the South African debt review process work?
Debt review is the procedure through which a debt counselor evaluates a client’s unpaid debt and puts in place a modified repayment plan. This will be accomplished by renegotiating lower interest rates with credit providers and extending the time periods for repaying debt.
In South Africa, who is eligible for a debt review?
Customers who are finding it difficult to make their monthly debt payments are eligible to request for debt counseling. These consumers ought to have distributable income that they can utilize to make smaller payments to their creditors. Consumers with common property marriages must apply for debt counseling jointly.
How can I tell if I need a debt review?
There are a few obvious signs that you need assistance with your debt. Consider this:
Are you acquiring additional debt to settle an existing loan?
Are your living expenses paid for through credit? grocery store?
Are you having trouble sleeping because you’re worried about your finances?
Is paying off debt taking up more than half of your income?
What occurs if you are subject to a debt review?
You have a debt counselor who has reviewed your income and expenses and determined that you are over-indebted and under debt stress if you are under debt review. Your creditors and the credit bureaus would have been notified, and a temporary repayment schedule would have been created by the debt counselor.
How long is the Debt Review process?
A debt review typically takes three to five years, or 36 to 60 months, to complete. Nevertheless, a lot of people finish the procedure earlier. The following elements affect how long a debt review takes: how much debt you owe overall.
What distinguishes a debt review from a blacklist?
If you’re on a list,Your credit record will likely already be badly impacted if you are blacklisted and wish to seek for debt review; it could take several years for things to get back to normal. However, unlike being placed on a blacklist, your name will be cleared of debt reviews as soon as you have paid off all outstanding balances.
