Is Debt Review a Good Idea?
Debt Review is a good idea provided of course that you adequately qualify as being over-indebted, and that you are determined to live a life free of stress-inducing debts piling up. Debt Counselling and going under debt review has been proven to successfully aid over-indebted consumers by providing much needed relief from creditor pressure, and if proactive and dedicated, consumers can deal with minimizing their debt in a regulated way over time, leading them closer to financial freedom and the ability to start fresh with credit again.
What makes you a good candidate for Debt Review?
You qualify as being over-indebted if you struggle to keep up with your basic living expenses plus your monthly debt payments, and only continue to fall deeper into debt. If you are a South African National with a steady income and the above mentioned issues then you qualify and debt counselling is a good idea for you. You may now apply to be under debt review and have your over-indebtedness declared official by a magistrate before you get started on your debt review journey.
The Benefits of Debt Review
Debt Counselling and the Debt Review industry offers debt-relief to over-indebted South Africans, and was introduced in 2007 in the National Credit Act (NCA). This measure to aid consumers is structured in a way so that a fixed amount is set for the consumer to pay each month until their debts are paid up to date, preventing them from being blacklisted and the consequences that result from this.
There are many benefits to enjoy from being under debt review, but it is very important to understand the process you are entering into, and to hold fast until all of your debt payments are up to date and your review comes to a close. To gain all the benefits from debt counselling, following through on the plan drawn up for you is imperative. Debt Review is a good idea for over-indebted consumers only if they are fully willing to embrace the process.
The Benefits include:
- One reduced monthly payment which includes all your debts consolidated into a fixed amount.
- Your budget will meet your day to day expenses before allocation to debt repayments.
- Your assets are protected under debt review; this means your car or home cannot be repossessed as you now have the protection of being under review.
- No more harassment or pressure from creditors as your credit profile will be flagged across all bureaus, another protective measure offered.
- You will no longer have to deal with your creditors yourself, as your counsellor does this on your behalf.
- No money is expected to be paid upfront; a big red flag should go up if it is as your counsellor is not complying with the regulated fees as per the National Credit Regulator (NCR). See the fees here on the National Debt Review Centre’s website.
- There is no black mark on your credit score, nor is there a record of your having gone under debt review.
- Guidance is provided by your debt counsellor to analyze and rectify your spending behavior; new ways of managing your money and cutting costs will enable you to feel in control and prevent you from slipping into old habits.