A debt review plan will help you to experience immediate relief and become debt-free in as little as 60 months when you partner with the right debt counsellor – the perfect solution for protecting your assets and improving your credit score.
View Debt counsellor OffersAccess a tailored debt review plan where your debt counsellor will negotiate for lower interest rates with your creditors on your behalf to ensure a reduced monthly repayment.
Take back control for a better financial future.
Do you dedicate a large portion of your income to repaying debt? Are your creditors hounding you for payments that you simply can no longer afford to make?
If so, then you should consider debt counselling - a way to an effective crackdown on debt, free up a good portion of income, avoid becoming blacklisted or having your assets repossessed and, of course, become debt-free.
Although debt review can help resolve a serious debt problem it is not a simple solution and will take time, commitment and dedication to ensure success. In addition, you cannot enter into new credit agreements while under debt review. This is to ensure that you stick to a new repayment plan as set out by your debt counsellor with the greatest chance of success..
A debt counsellor evaluates the financial status of an individual by taking account of all their debt and monthly expenses to decide if debt counselling fits their situation. The debt counsellor will re-arrange the debt repayments and contact the customer's creditors to inform them of the debt review and to arrange longer repayment terms and lower interest rates where possible.
Once a new debt repayment plan has been made the plan will become binding through a court order which ensures the creditors and the debtor stand by their commitments. The debt repayment plan and your monthly debt instalment will be forwarded to a payment distribution agency that will accordingly distribute the money to all your creditors.
Every South African has the right to apply for debt review but, certain requirements as laid out by the National Credit Act must be met for you to qualify. This requirement is that your debts must exceed your income after living expenses have been paid.
Your assigned debt counsellor is expected to identify whether you meet the criteria for debt review and if so process your application and begin the debt counselling process. Your counsellor will have to do everything in their power to provide you with a decent standard of living while you're under debt review and prevent any loss of assets or legal action from being taken against you.
Many people confuse debt counselling and debt consolidation but although they are both approaches designed to deal with debt, they are very different. Debt consolidation is where you would combine all of your existing debt and consolidate it into one larger loan.
You would then be left with only one monthly instalment to make on your debt but, you may incur early repayment fees and may end up paying more for the consolidated debts in the long run if the interest isn't appropriately reduced.
With debt review, you will have a professional counsellor arrange a new repayment structure and you will only make one payment every month but, unlike with debt consolidation, your existing debts will remain as they are with each creditor being paid by the Payment Distribution Agency chosen.
Before formally applying for debt review you must declare your assets and liabilities as well as honestly declare any and all household income and monthly living expenses. If you are not completely honest during this process you may be refused debt review services or you may end up entering into an agreement that is not sustainable and will cause you financial distress.
While under debt review you must inform your debt counsellor if your financial circumstances change in any way. This includes an increase or a decrease in income. You must also abide by the repayment plan and make the required monthly repayment towards your debt.
You should also note that the debt counselling provider will charge for their services and that you are responsible for these fees. The recommended fees for any debt review services have been laid out by the National Credit Regulator and we recommend that you review these before applying with any service provider.
LoansPlus have provided you with a comprehensive list of service providers below. While each lender essentially provides a similar service you can choose to work with one which you believe meets your needs most precisely or perhaps, has the experience and track record that shows they are reliable and results-driven.
When you apply for debt counselling you will have to provide the latest statement from all of your creditors, your ID documents, payslips, 6-month bank statements, proof of address and, your marriage certificate. You should also bring a statement indicating the balance on your home loan and a list of any additional debt you may have among family and friends.
This will allow the debt counsellor to review your financial situation accurately and develop a suitable repayment plan that will help you free up income every month and ensure you are able to afford living expenses while simultaneously becoming debt-free.