The Debt Review Process Provides the Ultimate Legal Protection
The debt review process has been created by the law in South Africa to help people handle their debt. Debt review is available to those who are unable to fulfil their financial obligations on time. It is also relevant to those whose total debt repayments are higher than their income after subtracting their living expenses. If you find yourself in a situation where your debt is out of control, consider what debt review can do for you. There is no need to face overwhelming debt alone when help is available.
What the Debt Review Process Involves
The debt review process involves consulting with a debt counsellor who is registered under the National Credit Act 34 of 2005. When you start the debt review process, the debt counsellor assesses your financial situation and creates a personalised repayment plan. They negotiate with your creditors on your behalf to reduce interest rates, extend payment terms, and waive additional fees or charges. You only need to make one monthly payment to the debt counsellor, who then distributes the funds to your creditors. The goal of debt review is to protect your rights as a consumer while ensuring that your creditors receive payment.
The Most Important Benefit of Debt Review – It Offers Legal Protection
The biggest benefit of the debt review process is that it’s a legal process. Once you’re in it, your creditors can’t take legal action against you. This means you’re protected from repossessions, legal action, and garnishee orders (garnishee orders allow creditors to get a portion of your salary or wages directly from your employer before you are paid).
Debt review must not be confused with debt restructuring. Debt restructuring is usually used by businesses, not individuals, to manage their debts. The goal is to improve the company’s financial situation while making sure creditors still receive payment. Debt restructuring is not a legal process, so there are no legal protections for the business, and creditors can take legal action if the debt is not repaid.
Why the Debt Review Process Is Your Best Option
For individual consumers, there are alternative debt counselling processes that can be considered. One option is a voluntary debt review. As the name suggests, it is similar to debt review. All your debt is also consolidated into one payment, but the process is completely voluntary. Use this process when your accounts are in arrears, but you want to prevent yourself from becoming over-indebted. Because it is voluntary, it provides flexibility. You can end it at any time but it’s not a legal process like debt review and doesn’t offer the same protection and benefits as the debt review process does.
Get the Ultimate Protection while Seeking Debt Relief
Debt review is ideal if you’re already over-indebted and need guidance and support to achieve debt relief while protecting your belongings from being repossessed. The formal process results in a Court Order that establishes new payment agreements and ensures that most of your assets are protected.
Seek Expert Advice to Handle Your Debt
National Debt Counsellors assist many South Africans each month in regaining financial freedom and becoming debt-free. We are experts when it comes to debt and the debt review process. So, if your debt is spiralling out of control and you are feeling overwhelmed, then talk to us. We are trained debt counsellors who can give you helpful advice and support and ensure that you are legally protected while working towards attaining debt relief. Our friendly team will clarify the process for you so that you are not left in the dark when it comes to your debt. Don’t deal with your debt on your own. We at National Debt Counsellors can guide you to a debt-free life. Reach out to us today and we’ll assess your financial situation free of charge, with no obligations.