What is the meaning of debt review?
Debt review is a process whereby a consumer’s debt is restructured to make repayment more affordable. It usually includes reducing the interest rate and extending the repayment period.
How does debt review work?
Debt review is a process where a debt counsellor helps you to restructure your debt repayments to make them more affordable. It usually involves negotiating with your creditors to reduce your interest rates and monthly repayments, and may also involve extending the repayment period.
Debt review contact details
If you are looking for a debt review company contact details, it is best to visit the companies listed below. Apply for a debt review from each and a financial advisor from each company will get in touch with you.
Find out what the benefit of each company is and make a well-informed decision based on the information you receive.
Debt review companies in South Africa?
A debt review can only be done by a registered debt counsellor and it is important to note that this is not the same as debt consolidation.
South Africa has got a few companies to consider when you are looking to apply for a debt review. Here is a list of the popular five debt review companies in South Africa:
- DebtSafe
- CreditSmart
- Debt Expert
- NDA Debt
- Debt Rescue
You can also apply at various financial service providers like your bank (ABSA, FNB, Standard Bank and more).
Debt review calculator
Debt review companies calculate your debt that you are obligated to settle, then do the necessary sums where you can save on interest and workout a monthly installment that you will have to pay.
Advantages of debt review
The main advantage of debt review is that it can significantly reduce your monthly repayments, making it easier for you to become debt-free.
In addition, all legal action against you will be stopped once you are under debt review.
Disadvantages of debt review
However, there are also some disadvantages to consider before embarking on this route.
For one, your credit record will be negatively affected as your name will be listed on the National Credit Registry. It means that it will become more difficult for you to obtain credit in the future.
Furthermore, you may also have to give up your assets, such as your car or house, to repay your debts.
And finally, although unlikely, there is always a possibility that your creditors could refuse to accept the terms of your restructured repayment plan.
What is a debt review clearance certificate?
A debt review clearance certificate is a document that is issued by a debt review company to debtors. Once they have completed their debt review process and have made their final payment.
This certificate is important as it is proof that the debtor has completed the debt review process and is now free from their debts.
This certificate can be used by the debtor to apply for new credit or to show to their employer as proof that they are now debt-free.
Conclusion
Debt review can help you manage your finances and leave you with more money monthly to do your daily things.
It is there to help you meet all your obligations monthly until all is paid. It still shows creditors that you are willing to take your responsibilities, not run away from them.
If you are struggling with debt and are considering undergoing a debt review, be sure to do your research and find a reputable company that can assist you through the process.
