How to Get Out of Debt Review – A Legal Process with No Quick Fixes
Before considering how to get out of debt review, you must first understand what debt review is and how the process works. Debt review, also known as debt counselling, is a legal process in South Africa designed to help individuals who are struggling with debt. It involves working with a registered debt counsellor to compile a structured debt repayment plan based on your specific debt requirements. While debt review works very well for many people, there are some downsides to keep in mind. Be aware of the negative effects before you start the process as there are no quick fixes to getting out of debt review.
On the upside, debt review combines all your debts into a single monthly payment, making it easier to manage your finances. When you start the debt review process, a debt counsellor negotiates with creditors on your behalf to try and lower your monthly payments. When you enter debt review, you are legally protected from legal actions taken against you by your creditors. Bear this in mind before you consider how to get out of debt review. This protection that prevents legal action against you ends if you exit debt review prematurely.
Debt review provides an opportunity for you to learn about how to manage your personal finances effectively. It will also show you how to apply healthy financial habits. Debt counsellors often offer financial education to help you understand your financial situation better, so you can avoid future debt problems.
Why You May Want to Ask How to Get Out of Debt Review
Debt review is a long-term commitment and the process can take several years to complete. While you are under debt review you will have to make consistent payments according to the debt repayment plan. You will also find it difficult to receive new credit. Your credit record will show that you are under debt review. This will make it difficult to secure loans or open new credit cards. Some people may feel embarrassed or judged by others for undergoing debt review. However, your financial health and freedom from debt are far more important than what others may think of you.
Yes, You Can Get Out of Debt Review
It is possible to end debt review but only once you have completed the repayment plan and settled your debts. At this time, you can request a clearance certificate from your debt counsellor. This certificate confirms that you have successfully completed the debt review process. A copy is then sent to credit bureaus to update your credit record and remove your debt review status. After this, you can access new credit and manage your finances independently once again.
Most importantly, it is critical to ensure that you have met all your payment obligations and settled your debts before ending the debt review process. Ending debt review early or not meeting the repayment requirements
can have several negative consequences, including potential legal action by creditors and a damaged credit record. How to get out of debt review without experiencing these negative results is to allow the process to run its course until it is completed.
It is recommended that you talk to a debt counsellor on how to get out of debt review before making any hasty decisions regarding ending the process.
Talk to Recognised Debt Professionals Who Can Really Help
National Debt Counsellors are required by the law to act in your best interests so that you can attain a debt-free life. We will help you reduce your monthly instalments to an amount you can manage realistically. Our debt counsellors will give you the tools, guidance and support you need to manage your finances effectively and take control of your debt. Unlike dishonest, unregistered so-called ‘debt advisors’, we are qualified to deal with your debt and remove the burden on you so that you are not left worse off than you were before. Contact us today for a free, no-obligation assessment of your financial situation.