Debt Restruct

How To Apply for Debt Review in South Africa

The National Credit Act first introduced debt review as a means of transforming the South African credit market. This act was first established in 2007 and was aimed at helping over-indebted South African consumers struggling to repay their debts. 

If you’re looking for help with your debt and would like to learn more about applying for debt review, this article will be very informative.

If you’re looking for a way to apply, then simply visit our home page and complete the quick debt assessment to get started. One of our senior consultants will guide you through the process from there.

 

 

Why South African’s Apply for Debt Review

The introduction of debt review in South Africa has been a unique experience for many South African’s. Initially, the NCA replaced the unpopular Usury Act, which didn’t protect consumers from unethical lending practices, contributing to the nearly 25 million South African’s currently suffering from over-indebtedness.

The primary purpose of debt review is to help protect consumers from unethical lending practices and help consumers reach a state of freedom from over-indebtedness and create an accessible and affordable credit market for everyone.

The advantages of debt review are numerous and include:

  • The process helps make your debt repayment more affordable by reducing your overall monthly repayment amounts.
  • Debt review helps to consolidate your payments into a simplified and more affordable debt repayment under your very own repayment plan.
  • You gain access to a debt counsellor who will guide you through the debt review process and keep you updated, in addition to communicating with creditors on your behalf.

 

 

Who Can Apply for Debt Review?

The debt review process is designed to assist consumers that are struggling to repay their debts. This can be due to several different factors such as:

  • Over-indebtedness
  • Financial hardship
  • Inability to repay debts
  • Inability to afford the repayments

The debt review process is quite simple and is based on the following qualifying criteria – to apply, you must:

  • Be a South African citizen
  • Be employed 
  • Qualify as over-indebted
Check to see if you qualify to reduce your debt instalment with our quick quiz

How To Apply for Debt Review 

Applying for debt review is quick and easy, however, if you’d like to learn more and choose the right service provider, then the process involves several steps on your part before you can begin. Here are a few things that you might consider:

 

  • Find the right debt review company to help you: You will need to find the right debt review company to help you with your debt. This can be done by searching online or contacting companies that offer debt review.
  • Ensure that the company is registered with the National Credit Regulator (NCR): The NCR is a statutory body that regulates and supervises the South African financial services industry. You should only work with a company that is registered with the NCR to ensure that the company is compliant with the regulations and laws laid out by the NCR.
  • Find out which application options the company offers: Several different application options may be offered, including online, telephonic, and manual (printing and submitting papers).

 

Once you’ve completed the steps above, you can start the application process itself. When you apply with Debt Restruct, your debt counsellor will help you with the formal application and submit and complete all of the relevant debt review forms with you. An overview of the process includes:

  • Filling out Form 16: This form must be completed and provided to your debt review company. This form is used to outline your debt details, as well as your income and expenditure details. You’ll want to make sure you include any relevant documentation required, such as proof of identification and all your credit agreements.
  • Debt Counsellor Review: The debt counsellor you choose to work with will then have 30 days to determine if you qualify as an over-indebted individual. This will include them speaking to your creditors to determine your remaining balances. 
  • Filing of Form 17.2: If the process finds that you are in a stressful debt situation, you will then receive a confirmation in the form of 17.2, which will state your over-indebtedness. Your creditors will also receive a copy of this form, as well as the credit bureaus.
  • Creation of Interim Repayment Plan: Your debt counsellor will then create a repayment plan for you, which will outline the repayment amounts and the days that payments are due. This will then be sent to your creditors. 
  • Consent Order: Should your creditors accept the terms and conditions of the repayment plan, then your debt counsellor will obtain a consent order from the Magistrates Court or the National Consumer Tribunal (NCT), which will outline the repayment plan. 
  • Repayment Begins: Once your repayment plan goes into effect, you’ll be responsible for making consolidated monthly payments which your debt review provider will distribute through Payment Distribution Agencies (PDA.) on your behalf.



What Happens Next 

Once your repayment plan is in effect, your debt counsellor will take responsibility for communicating with your creditors, as well as the NCT, to make sure that you’re staying on track.

If you have further questions regarding the debt review process, feel free to contact us to learn more. 

 

Ready to Apply? Get Started with Debt Restruct Today!

Learning how to apply for debt review doesn’t have to be a long, complicated process. Here at Debt Restruct, we have created a simple, step-by-step application, which will allow you to get started in a matter of minutes.

 

Think you could benefit from a debt review? Then take our free assessment to get started right away.

Do you know whether you qualify?

Find out if you’re eligible to reduce your debt and protect your belongings.

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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.

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