If you are struggling with paying off your debts, you may be considering debt review and may hear differing opinions on the advantages and disadvantages of debt review. Let's look at the comment opinions.
Debt review is not a way to avoid paying your debt but rather a way of managing to pay off what you owe. If you are over indebted, debt review can be a good thing in the long run.
The more money you owe, the less likely you will be able to repay your debt. The only good debt is money that you borrow in order to make more money, like an investment. Make sure your finances are organised, know who you owe money, decide which debt to pay off and put together a monthly budget.
There are various options available when you find yourself feeling overwhelmed by debt. Make sure you choose the right one for you.
Simply put; you need to avoid loans at all costs when you are under debt review. Taking a personal loan when you are under debt review can cost you everything you’ve worked very hard for.
When the National Credit Act (NCA) introduced debt review in 2007; many South Africans have since been assisted and prevented from being blacklisted, having their assets repossessed, or living with a heavy burden of debt.
The festive season is almost here, and it’s been one challenging year. No one could have predicted what 2020 had in store for us. The Covid-19 Pandemic changed the world overnight.
Not only were we impacted emotionally but our financial wellbeing was deeply affected. We saw retrenchments and unemployment. People were on reduced pay and there was a general uncertainty of what was to come.
As hard as it may be during challenging times, do not miss a debt review payment. Debt review is a legal process, and your payment plan has been accepted by all your creditors. A court order has also been granted.
National Credit Act. Act prescribing rules and regulations for the credit industry and sets the groundwork for over-indebtedness and debt counselling.
Debt review is a process where a debt counsellor assesses your outstanding debt and implements a restructured debt repayment plan on your behalf. A new monthly payment plan is drawn up by your debt counsellor. When you are undergoing debt review, you are legally protected by the National Credit Act (NCA) and your creditors are no longer entitled to hassle you to repay your debts. All communications are managed by your debt counsellor on your behalf.
The global pandemic has not only changed our lives as we know it, but it has drastically changed the South African economy and in turn, our finances. South Africans have had to change their way of living to suit their new financial situation. Many have been left without any income for months, and are not able to afford the things they are used to, leaving us to make tough financial decisions that will affect our lives for years to come. Here are some ways to keep your finances going in our changed world.
Are you struggling with debt during COVID-19? Since South Africa announced its nationwide lock-down back in March, many have been left without jobs or receive a reduced salary and are generally in a bad financial situation. Although the government has provided some financial relief through temporary relief funds, this has proven to not be enough to help the average South African sustain their everyday lives. It may be best for you to take control of the situation yourself. Use this time to review your financial situation and reach out for help where you need it.
It’s always good to learn about finances. Here we provide a guide to your finances. The basics of budgeting, credit, banking, saving and debt are the pillars you need to focus on to not only improve your financial education but you will be able to apply what you learn to make your finances great.
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