What Is Debt Review?
We explain the process of debt review.
Debt review has no debt limit, while debt administration has a limit of R50 000 debt. Your vehicle and property can fall under debt review.
Debt review and your debt counsellor
Under debt review there is no monthly fee paid to an administrator (attorney). You only pay a once off fee that may not exceed the repayment schedule amount. A debt counsellor will assist with setting up agreed monthly repayment fees and negotiate with your creditors for payment arrangements to a manageable amount.
Lower interest rates
Typically, under debt review your interest rates on the loan are lowered. This way your monthly repayments are more manageable and all the creditors receive some repayment every month. A payment distribution agency (also known as a PDA) is in charge of ensuring your monthly payments are made to your debtors.
Cost effective debt review
Debt review is more cost effective than debt administration because there are less fees involved and your payments are made to your creditors every month, on time. Debt review falls under the National Credit Regulator and you therefore receive a clearance certificate once all debts are paid in full. You can also rest assured that the National Credit Regulator will protect your rights during the debt review process.
Make your monthly payments
If you find yourself in hard times, debt review might be a good option to ensure you are not placed under sequestration which could lead to you losing your assets. You have to stick to the monthly payments agreed upon to pay off your debts as quickly as possible.
Debt review and your credit report
Debt review will reflect on your credit report and you will not be able to take out any new credit while under debt review. If you have no other options left when it comes to paying your debt, consider going under debt review so that a manageable repayment plan can be set up.