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Debt Counselling
What is Debt Counselling?
Debt counselling aka debt review is a legal debt relief measure which was implemented by the National Credit Regulator (NCR) via the National Credit Act (NCA) in 2007 to assist over indebted consumers, or consumers who are struggling to keep up with their monthly debt obligations.
This process allows for a debt counsellor to assess your financial situation, works out a new budget and calculates a restructured payment plan for your creditors that is affordable and manageable for you. This repayment plan is formalized by a Magistrate in court by means of a court order. Upon completion of the process after the debt has been settled, your debt counsellor will clear you.
Benefits
Benefits of Debt Counselling
Debt counselling protects your assets from being repossessed.
Benefits include:
- Reduced payment
- Reduced interest rates
- Affordable instalment
- Creditors cannot harass or take legal action against you
- Assets are legally protected against repossession
- Continuous support & advice
- Budgeting
- Confidential
- Peace of mind
Years Of Experience
FAQ
Do you have a question about Debt Review?
Do you have a burning question? Browse through our most frequently asked questions to learn more about Debt Review and how Debt Rescue can help you
Once you have completed the debt review process and all of your debts have been settled in full, your debt counsellor will issue a debt review clearance certificate. The debt review clearance certificate serves as proof that you have completed the debt review process and that you are no longer under debt review.
In some cases, the debt review clearance certificate may be issued within a few weeks after you have completed the debt review process. However, it can take several months to complete the process, especially if there are any disputes or negotiations with creditors.
It is important to keep in touch with your debt counsellor throughout the debt review process to ensure that everything is proceeding smoothly, and to follow up with them after the process is complete to ensure that you receive your debt review clearance certificate as soon as possible.
Debt review, also known as debt counselling, is a debt relief measure in South Africa that helps over-indebted consumers get out of debt. The National Credit Act (NCA) introduced the process in 2007 to prevent over-indebted consumers from being blacklisted and having to deal with the consequences thereof.
Debt review has become a lifeline for many South Africans who are struggling to make ends meet because of unmanageable debt.
If you are earning an income but you are unable to meet your minimum credit obligations every month, then help is available through a process called debt review.
The National Credit Regulator (NCR) has provided guidelines for debt counsellors to follow when assessing whether a consumer is over-indebted and eligible for debt review. These guidelines take into account the consumer’s income, expenses, and debt obligations to determine whether they have sufficient funds to cover their living expenses while also servicing their debt.
Getting your free no obligation debt review assessment is the first step in the debt review process. The assessment determines whether you are over-indebted and therefore eligible for debt review. A debt counsellor will conduct a thorough assessment of your financial situation, taking into account your income, expenses, and debts.
During the assessment, the debt counsellor will review your credit credit report to get an overview of your debt and credit history. They will also look at your monthly income and expenses to determine your debt-to-income ratio. If your debt-to-income ratio is high, it’s a sign that you are struggling to keep up with your debt repayments.
Based on the assessment, the debt counsellor will determine whether you are over-indebted. In South Africa, an individual is considered over-indebted if they are unable to meet their debt obligations in full and still have enough money left to cover their basic living expenses.
If the debt counsellor determines that you are over-indebted, and you decide to go ahead with an application, they will then proceed to apply for debt review on their behalf. The application involves submitting the assessment report and other relevant documents to the National Credit Regulator (NCR) for approval.
Overall, the assessment process is critical in ensuring that only eligible individuals are admitted into the debt review program. It also helps the debt counsellor to understand the individual’s financial situation and create a realistic repayment plan that is tailored to their needs.
As everyone’s debt review plan is different, the amount of time the process takes to complete will vary from person to person. Depending on your circumstances, it can take between 3 to 5 years to get rid of all your debt.