No one likes to admit they are struggling with debt. But it is important to know that many South Africans are in the same position. There are over 8 million credit-active consumers are deemed ‘over-indebted’. This means more than half their salary is going towards servicing their debt and many have missed repayments and found themselves to be in arrears. There is help available. Don’t be afraid to ask.
What is debt?
Debt, in simple terms is a sum of money that is due to creditors. If you do not have the means to buy something, you can take out credit and buy the thing you wanted. Debt plays off the human need for instant gratification. Instead of saving you can have what you want now. It is easy to fall into the habit of using credit for purchases. You may start off with one credit card but then get a store card and then another. Before you know it you can find yourself in a debt spiral. If this is you, ask for help today.contact us
What is debt review?
Debt review, also known as debt counselling, was introduced by the NCR (National Credit Regulator) as a solution to help South African consumers who are struggling with their debt. The debt review process involves a debt counselor who assesses your income, your expenses and your debt repayments. This helps them to understand your affordability. If you cannot afford to service your debt repayments in full, your counselor will negotiate a reduction in monthly repayments and interest rates with every one of your creditors. You will be given a reduced restructured repayment plan that you can afford to pay. Your counselor will manage the repayments to creditors and deal with all further communication from them. You as the consumer gain peace of mind knowing someone else has your back leaving you to focus on what matters most.
What happens at the end of the process?
Contrary to popular belief you are not blacklisted if you enter debt review. At the end of the process you are issued with a clearance certificate confirming you are now debt free. Your counsellor will contact all the credit bureaus to update your credit record to reflect your new status. There will be no negative information on your credit record.
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Are you ready to get help? Contact us today and we’ll get you started on the journey to becoming debt-free.contact us
And remember, we’ll be with you every step of the way. Always looking out for you.