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. If you're wondering what actually happens when you go under debt review — from the first phone call to your clearance certificate — this is what it looks like in practice.
Debt review, also known as debt counselling, is a debt relief measure 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 off 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, which she'd used to cover all her expenses, now also needed to be paid back — but she simply didn't have the money to do so.
With Meerkat, she went from a total monthly debt instalment of R10,500 to paying only R6,272, saving a total of R4,228 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:
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 instalments, she completed the debt review process. Now, she can apply for credit again.
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.
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, to determine if she was over-indebted.
Not sure if you're over-indebted? Read this 11 signs you may be over-indebted.
Linda was found to be over-indebted. The Debt Counsellor then put together a new reduced, affordable repayment plan so Linda no longer needed to stress about creditors calling to demand payment.
She also no longer needed to rely on her Woolworths credit card to buy groceries.
Meerkat's Debt Counsellor negotiated with Linda's creditors, resulting in reduced interest rates on her loans.
A court order was granted for Linda's repayment plan. Linda could now breathe a sigh of relief — her vehicle, financed with MFC, was legally protected, meaning creditors or debt collectors could not repossess it.
She diligently made her monthly debt instalment. In March 2023, she was issued with a debt review clearance certificate, indicating 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 also started saving with Meerkat's savings solution during her time under debt review, building a deposit for a home.
She'll rebuild her credit score by taking out a small retail account. Because she knows how to use credit wisely, she won't use all the credit available to her.
After this, she'll be able to apply for a home loan — and with her deposit, she'll be in a stronger position to finance the home.
If, like Linda, you 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, so you can enjoy life without worrying about how you'll pay for everything. You deserve a stress-free life where you can pay all your debts and still have money to live.
Have more questions about the process? Let us call you back for FREE.
Interested in learning more about prescribed debt and what it means to have your debt written off in South Africa? Read this blog post.