Debt Review Counselling in South Africa

1. What is debt review and how can it help me achieve financial stability in South Africa?

Debt review is a process where a debt counsellor assesses your financial situation and negotiates with your creditors to restructure your debts. This can lead to reduced monthly payments, lower interest rates, and ultimately help you manage and pay off your debts, paving the way for financial stability.

2. How does debt counselling in South Africa work to consolidate my debts?

Debt counselling involves evaluating your outstanding debts and creating a structured repayment plan. The debt counsellor negotiates with your creditors to combine all your debts into one consolidated payment at a lower interest rate. This makes it easier to manage and pay off your debts over time.

3. What are the benefits of using a debt review service to pay off debt?

Some benefits of using a debt review service include:

• protection from legal action by creditors;
• a structured and affordable repayment plan;
• reduced interest rates;
• and the peace of mind knowing that you are on a structured path towards becoming debt-free.

4. How can debt review assist me in securing a loan for bad credit in South Africa?

When you’re under debt review, your financial behavior is monitored and improved. This can reflect positively on your credit record. Though getting a loan during debt review can be challenging, once you complete the process, your improved credit score and financial standing can make it easier to secure loans even with a previously bad credit history.

5. Is it possible to get a loan if I’m blacklisted and undergoing debt review?
While under debt review, it’s generally not recommended to take on more credit. However, the debt review process can help you rebuild your credit profile. After successfully completing debt review, being blacklisted may no longer be an issue, and you may find it easier to qualify for loans.

6. How can I consolidate debt to make my monthly payments more manageable?

To consolidate debt, you can approach a debt counsellor who will assess your debts and negotiate with creditors. The goal is to combine all your debts into a single payment with lower interest rates, making it more manageable and affordable to pay off your debts over time.

7. What is the process of applying for debt review in South Africa?

To apply for debt review, you will need to contact a registered debt counsellor, who will then assess your financial situation. You’ll need to provide documents such as your ID, payslips, and bank statements. If you are found to be over-indebted, the counsellor will negotiate with your creditors to restructure your payments.

8. Can debt review help protect me from legal action by creditors?

Yes, one of the benefits of being under debt review is that it provides legal protection from your creditors. Once you are under debt review, creditors cannot take legal action against you for the debts that are being reviewed.

9. What’s the difference between debt consolidation and debt review in South Africa?

Debt consolidation involves taking out a new loan to pay off multiple debts, ideally at a lower interest rate. Debt review, on the other hand, doesn’t involve taking out a new loan. Instead, a debt counsellor negotiates with your creditors to restructure your existing debts into a more manageable payment plan.

10. How long does it take to complete the debt review process and achieve financial freedom?

The duration of the debt review process varies depending on the individual’s financial situation and the amount of debt. Generally, it can take between 3 to 5 years. The key is to stay committed to the repayment plan set out by the debt counsellor.