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Debt Review In South Africa
What is Debt Review?
A lot of people wonder about what is debt review – what it is, how it works, and whether it’s right for them. The good news is that it’s possible to wipe out your debts even if you don’t have the income or assets to repay them in full. However, there are some rules and conditions you need to meet in order to do so, and these vary from state to state, so make sure you understand all of your options before you apply. Here are some answers to common questions about debt review
The History of Debt Review
is interesting to note that debt relief or counselling, as it is sometimes called, has been around for a long time. In fact, the very first records of debt counselling are found in Mesopotamia over 5,000 years ago where it was used by temples and city-states in the form of almsgiving.
Why Use a Professional to Help With Your Debts?
If you’re struggling with debt, there are a number of things you can do to manage your debts and make a plan for how to tackle them. In many cases, however, the best option is to enlist the help of a professional – such as a debt counselling service. Debt counsellors are not only knowledgeable about dealing with debt, but they can also provide professional advice on any number of other financial issues that you may be facing – including budgeting, credit card usage or retirement planning.
Can Anyone Get Involved In A Debt Review Process?
Anyone can get involved in a debt review process. It is a form of consumer protection that entitles those who cannot afford to repay their debts to take part in a free, independent debt counselling service to explore all of their options before any legal action is taken against them by the creditor.
When Should I Consider Engaging A Debt Relief Company?
You should consider engaging a debt relief company when you can no longer keep up with your bills, have contacted your creditors, filed for bankruptcy, or are currently in a consumer proposal. Debt relief programs are often available to individuals or families that are experiencing financial hardship as a result of accumulated debts.
How Can I Access The Best Service Providers In My Area To Help Me Manage My Debts And Achieve Bankruptcy Alternative Solutions?
A bankruptcy alternative is to file for a Chapter 13 debt review. This type of process is often favored by the individual who may have sustained a considerable amount of debt but does not wish to be bankrupt or go into foreclosure. However, before deciding on whether to file for this type of solution, it is crucial that you first speak with one of our qualified bankruptcy lawyers for advice in assessing your own situation. You might then decide that filing for Chapter 7 or Chapter 13 bankruptcy is more appropriate. Tap the Call Me Back button and we will call you back.
What Will Happen If I Ignore My Credit Cards And Bills?
If you’re thinking about ignoring your credit card bills, it’s important to know what may happen. First, if the accounts become seriously delinquent or go into default (90 days late or more), you will be at risk for an additional charge known as a late fee which could be on the order of R700 – R1000 per occurrence. Next, your account will typically accrue interest at the rate of over 12% or more annually.
When Can I Expect An Improvement In My Situation Under A Debt Review Program?
The outcome of a debt review program will depend on the specifics of your situation, but in general, you can expect an improvement after approximately 6 months. An easier repayment plan will be assigned to you when you graduate from the program. You’ll be informed about any changes and how it impacts your budget going forward.
FAQ'S
Frequently Asked Questions
While debt review can be a lifeline for an over-indebted consumer, it should not be entered into lightly. Over-indebted consumers need to be aware that, once they enter debt review, they cannot apply for new credit and it cannot be exited until all the debts are settled.
How long the debt review process lasts depends on a number of things, such as the amount of debt that you have and how much you can afford to repay, amongst others. Typically, it takes 36 – 60 months to complete the process, be declared debt-free, and get your clearance certificate.
After your initial assessment with a debt counselling company, you may be informed that your current situation does not qualify you to go under debt review. Some of your accounts, especially those which have been subjected to legal action, may be excluded. Your debt may take longer to repay.
Debt review is a legal process, and your payment plan has been accepted by all your creditors. A court order has also been granted. If you default on your plan, you are breaking your agreement and your creditors are within their rights to initiate legal proceedings.
Q: I want to remove my name under debt review but have not finished paying my debt. Is it possible? Yes, this can be done if your debt review was made an order of court and the court order is subsequently rescinded OR an application is made to court to have you declared “not over-indebted.”
The process shall be completed within 15 minutes in which you will be advised of the appropriate action to terminate your debt review and clear the flag from your credit records. The once-off Assessment fee of R85 is payable upon submitting the service request form and the assessment process will commence immediately.01 Jun 2020
How long the debt review process lasts depends on a number of things, such as the amount of debt that you have and how much you can afford to repay, amongst others. Typically, it takes 36 – 60 months to complete the process, be declared debt-free, and get your clearance certificate.
About Us
We are a debt counselling / debt review company based in Durban, South Africa. We help South Africans get out of debt fast. Contact us for a free debt assessment.
