Many South Africans wonder whether debt review is bad and are sceptical about debt review as a service, and sadly, this scepticism comes from popular misconceptions about debt review.
This article addresses the eight most common misconceptions about debt review. Here’s a quick list of the myths about debt review that we’ll cover in this article.
The purpose of debt review is to help over-indebted South Africans that are struggling to make their monthly debt repayments.
Whilst under debt review, your credit record reflects your debt review status, preventing you from making more even more debt.
The inability to make debt whilst under debt review creates the misconception that debt review applicants are blacklisted.
The credit bureau will remove the debt review status as soon as your debt is repaid and your clearance certificate is issued. In fact, you might see your credit record improve after the steady term of monthly payments that debt review made possible.
Your debt counsellor structures your repayment term according to your needs and your affordability. If you’re able to settle the debt in less time, you can choose a shorter period. Some participants exit debt review within twelve or twenty-four months.
Another popular misconception is that a court appearance is required. Thankfully, this is not true. All court applications are dealt with by the attorney appointed by your Debt counsellor. It is possible, under rare circumstances, that the magistrate might ask the consumer to be present at court, but it is not common.
If you are considering the help of a debt counsellor, you must verify that the debt review company is registered with the NCR (our registration number is: NCRDC3132).
Tip: use the NCR’s website to check
Registered debt counsellors must make use of an NCR registered Payment Distribution Agent (PDA). It is the PDA’s responsibility to manage payments and distribute the funds amongst creditors.
This process ensures that monthly payments are safe and properly distributed.
The purpose of the Debt Review process is to assist all over-indebted consumers. Some have massive amounts of debt, whilst others have smaller outstanding balances.
Complete our quick debt assessment to see if you qualify.
Your reduced monthly instalment incorporates all of the applicable fees. Making it easier for you to get started and pay off all of your debt. Check out this article to learn more about the regulatory costs of debt counselling.
Job applications: Denying general job applicants, outside of financial positions, based on debt review status can be considered discrimination.
Rent applications: Your debt counsellor may issue a letter confirming your monthly rental provision that you can use to apply for any accommodation (naturally, the rent may not exceed the provisioned amount.)
Debt review legislation protects consumers that are battling ever-growing debt. If you’re struggling to pay your monthly debt instalments, then it’s best to start as soon as possible. If you qualify, you’ll be able to reduce your monthly debt instalment, protect your assets from being repossessed by creditors, and stop creditor harassment. Starting sooner rather than later can shorten your term and prevent additional damage to your credit record.
Hopefully, this article addresses any misconceptions you might have had and answers a few vital questions about the benefits of debt review. Debt review isn’t bad; debt review is here to help.
Find out if you’re eligible to reduce your debt and protect your belongings.
Disclaimer: This website and any information herein is not intended to be, nor does it constitute, financial, tax, legal, investment, credit, or other advice. Before making any decision or taking any action regarding your finances, you should consult a qualified professional directly.