How does debt review help you?

Many articles and advertisements are circulating regarding the process known as debt review. There are many benefits to undergoing debt review but first, you have to understand how this process can help you.

Being over-indebted means you are unable to make your monthly debt repayments and are no longer seen as creditworthy. This can hamper your ability to acquire more credit when you really need it. Debt review helps you to rehabilitate your debt whilst preventing credit providers from repossessing your assets, for example, your home or your motor vehicle. You also learn, through the debt review process, how to better manage your credit. 

Getting started:

• There are a number of reputable debt counsellors which can conveniently be found in each of the 9 provinces across the country. These firms are registered with the National Credit Regulator and their information can be found on their website.
• Once you have contacted your preferred debt counsellor, he/she will take you through an assessment to understand what your current financial situation is and how they can help you.
• The debt counsellor will help you with the application process. Once completed, the process of getting you on the road to rehabilitating your finances can begin.
• All the relevant applications and communications are sent on your behalf to each of your creditors. Essentially what this means is that your debt counsellor will negotiate, on your behalf, a less onerous debt repayment amount.
• Your debt counsellor will be in contact with you as to the status of your application.
• Once all your creditors have agreed to the debt repayment proposal submitted to them by your debt counsellor, you will be required to pay one single amount, which will be distributed to each creditor. You too will know how much you will be paying monthly towards your debts.
• It is important to note that from this point on, you still maintain full use of your assets.
• On the date you have chosen to be debited there will be one deduction made from your bank account by the Payments Distribution Agency appointed by your debt counsellor. This one amount will be distributed to your creditors. This process will happen each month on the same date unless otherwise communicated with you before the time.
• The Payments Distribution Agency will give you access to a monthly statement which will show all your outstanding balances.
• Once all of your debts have been paid off you will be issued with a clearance certificate and you are creditworthy once again. With this knowledge, you have gained from your process of debt review, you are in a position to handle your creditors and debts better.

We understand that this time may be particularly stressful, but with the correct information, you are in a better position to make the right financial decision for yourself.

Should you have any questions please do not hesitate to check out our FAQ section as well as the NCR’s website to find a debt counsellor near you. 

The iPDA is your payments partner to simpler debt review.