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How do I get out of debt in South Africa?

This is a real-life example of how a South African woman who couldn’t pay her debt became debt-free thanks to debt review at Meerkat.

Debt review, also known as debt counselling, is a debt relief measure that was introduced by The National Credit Act to help South Africans struggling to pay off their debt.

Read: Debt Counselling | Everything you need to know

Linda Phillips approached Meerkat—a registered financial services provider—in 2018 with a total debt amount of R299 877.38.

At this point, Linda, who loved her job, was struggling to properly focus at work because she kept worrying about how she would pay for all her debt. After hearing about debt review and seeing the positive reviews on TrustPilot about Meerkat, she decided to complete the online contact form.

Her latest loan that she used to cover all her expenses now also needed to be paid back, but she just simply did not have the money to do so.

With Meerkat, she went from having a total monthly debt installment of  R10 500 to paying only R6272, saving a total of R4228 on her debt every month. 

She was also able to reduce 6 monthly debt repayments to ONE reduced monthly payment.

Below is a list of the debts she had:

  • MFC Vehicle
  • FNB Overdraft
  • FNB Credit Card
  • Direct Axis Loan
  • Woolworths Loan 
  • Woolworths Store Card

Meerkat's Debt Counsellors helped her reduce the interest rate on her loans. The original average interest rate was 37%, but with their help, it was reduced to an average of 6.31%.

After five years of diligently paying her debt review installments, she has completed the debt review process. Now, she can apply for credit again.

5 steps Linda took to get out debt

Step one

Requested a free call-back online. Filled out the quick online form which took less than 30 seconds to complete. Request your FREE call-back by clicking the button below. 

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Step two

Meerkat's NCR registered Debt Counsellor called her back the same day. They used information about her income and expenses to conduct a financial assessment. This assessment was to determine if she was over-indebted. 

Not sure if you’re over-indebted? Read this blog post for 11 signs you may be over-indebted?

Step three

Linda was found to be over-indebted. The Debt Counsellor then put together a new reduced affordable repayment plan so that Linda no longer needed to stress about creditors calling her off the hook demanding payment. 

She also no longer needed to rely on her Woolies credit card to buy groceries. 

Meerkat's Debt Counsellor negotiated with Linda's creditors. This resulted in reduced interest rates on her loans. 

Step four

A court order was granted regarding Linda's repayment plan. Linda could now breathe a sigh of relief. Her vehicle, which she had financed with MFC, was legally protected. This meant that creditors or debt collectors could not repossess it. 

Step five

She diligently made her monthly debt installment. In March 2023, she was issued with a Debt Review clearance certificate. This certificate indicated to credit bureaus that she had successfully completed the debt review process. 

Read: What is a debt review clearance certificate?

In total, she spent 5 years under debt review. 

Linda had also, during her time under debt review, started saving with Meerkat’s savings solution for a deposit for a home. 

She will rebuild her credit score by taking out a small retail account. Because she knows how to use credit wisely, she will not make use of all the credit available to her. 

She will be able to apply for a loan for a home after this. With her deposit, she will be in a stronger position to finance the home. 

If you, like Linda, can no longer afford to pay your debt in South Africa, you should consider going under debt review with Meerkat. 

We can help you gain control of your finances. This way, you can enjoy life without having to worry about how you will pay for everything. You deserve a stress-free life where you can pay all your debts and still have money to survive each day. 

Have any more questions about the process? Let us call you back for FREE.

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Interested in learning more about prescribed debt and what it means to have your debt written off in South Africa? Read this blog post.



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