DEBT REVIEW

 

Debt review (otherwise known as debt counselling) is a debt relief process targeted at credit consumers who are over-indebted and struggling to manage their finances.


The National Credit Act (NCA) introduced a formal debt rehabilitation program, debt review, in order to promote responsible credit granting and use and for that purpose, to prohibit reckless credit granting and to provide for debt re-organisation in cases of over-indebtedness.


The process was also implemented in order to make sure that debt counsellors follow strict and ethical guidelines when assisting clients with gaining their financial well-being.


Debt review is the process whereby a debt counsellor assesses a client’s outstanding debt and proposes a restructured debt repayment plan. In some cases this might be done through the process of renegotiating interest rates with credit providers in order to reduce them, as well as by extending the debt repayment terms and reducing the amount of the monthly instalments.


A new affordable monthly budget and payment plan will be drawn up by a debt counsellor, which will provide the client with the correct guidelines and means to survive financially.


The debt review process ensures that the client makes only one monthly debt repayment instalment to a registered Payment Distribution Agency, which will then pay all the clients credit providers. This reduces the stress of having to keep up to date and on top of multiple debt repayments.


Most importantly, when under debt review, clients are legally protected by the National Credit Act (NCA) and creditors are no longer allowed to institute legal action against them, as long as they comply with their restructured obligations.

To download and complete the Debt Review Form, please click on the MS Word Icon to the right : 

 


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