This is a great way to stay clear of incurring more debt and start focusing on a debt-free future. This means you cannot take out any debt until the debt review process is complete. Take a break from creditOnce you’re under debt review, your credit profile is flagged at the credit bureaus. Once you have completed the debt review process, the credit bureaus have no permanent record that you have ever been under debt review. No blacklistingWhile under debt review, the credit bureaus cannot blacklist you as you are protected by the NCA. Your debt counsellor will take over all communication with creditors on your behalf. This means that creditors may not hassle you. You and your assets are legally protected by the NCA from creditors. Legal protectionOnce you’re under debt review you will not have to worry about any legal letters or phone calls from creditors. Therefore, by paying a decreased amount every month, you can afford to pay off your debt and cover all of your other living expenses. Your debt counsellor will reduce your monthly repayments towards debt by extending your repayment period. Reduced monthly payments towards debtThe main aim of debt counselling is to help you pay off your debt for good, while still allowing you to have enough money to cover your other expenses. You only have one fixed lower repayment per month to pay towards your debt. A debt counsellor will simplify the process for you. When you go under debt review, you no longer have to stress about your monthly debt payments. Which creditor do you pay? How do you keep track of all your payments? Do you have to take out more debt to make it through the month?
Another problem arises when your household income isn’t high enough to cover all of your debts. Missing a single payment can affect your credit score and result in late payment fees. One fixed monthly paymentThe more account payments you have due every month, the easier it is for you to accidentally miss a payment.
To help you make an informed decision about whether to apply for debt review, here’s a list of the advantages and disadvantages of debt review. Debt Rescue has saved thousands of South Africans from losing their assets, becoming blacklisted and allowing them to live without the heavy burden of debt taking away money from living expenses.Īlthough debt review is extremely effective, especially in the long run, it’s important for you to know what to expect during your journey to financial freedom. Since then, debt review has been an extremely effective way to get out of debt. Debt review was introduced by the National Credit Act (NCA) in 2007.
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