Benefit with the Debt Review Process
Who should apply for debt review?
Any person in South Africa that is overly in debt can apply for debt review. If you are unable to honour monthly debt instalments, if you are in arrears with debt payments and if creditors are contacting you to follow up on payment – then you can apply for debt review immediately.
Why should you apply for debt review?
If you have a lot of debt and you cannot afford to pay your debt, you need to consider applying for debt review. Firstly, it is of utmost importance to have a good credit record that will enable you to make future purchases on credit, such as a home or a vehicle. Secondly, not paying your debt off is a criminal offence and you can get into a lot of trouble with the law by not keeping a clean credit record.
Who will assist you with debt review?
Easy Debt Review has debt counsellors with intensive experience in debt mediation and review. Our counsellors offer a service that is skilled and professional, but still add a personal touch to everything that they do. Debt counsellors are appointed through the South African National Credit Act and as such endorsed by the National Credit Act.
What do debt counsellors do?
A debt counsellor will become the intermediary between you and your creditors. They will manage the communication process with your creditors and all debt payment negotiations. Creditors are aware of the National Credit Act and they prefer working directly with debt counsellors as supposed to clients. Your debt counsellor will take your finances under review and then design a payment plan for you. They will also communicate with you on a regular basis to provide you with additional financial advice and support.
What does debt payment negotiation mean?
Our service includes payment negotiation with your creditors. We are able to negotiate with creditors to offer clients reductions in outstanding amounts due. Obviously not all creditors agree to these reductions depending on the particular severity of the debt. But most creditors agree to reduce overall debt amounts. This is greatly beneficial to you because it will enable you to pay off your debt in arrears much faster than what you would originally have been able to.
How much will my debt repayments be reduced by?
Debt repayments are usually reduced by between 30% to 40% – but our debt counsellors have been able to negotiate reductions to as much as 60% in the past. These kinds of reductions are exactly what people need, and also deserve. The very existence of the National Credit Act was born out of the realisation by The South African Government that consumers were allowed to attain more debt than what they could possibly ever afford. This is why we are able to negotiate debt payment reductions.
What are the benefits of being under debt review?
The biggest benefit will be an emotional one. Emotionally you will become relieved from all of the pressure of being overly in debt. The minute you are taken under debt review you will be in a ‘safer place’ financially. You will be able to see the future more clearly because debt counsellors will support you to get back on your feet again. There are many other benefits to debt review which will allow you to experience a better quality of life.
What are the debt review fees?
Costs for debt review are regulated by the National Credit Regulator. Costs are split into 3 items.
1. A Once off fee in the first month that is capped at R4000 for a single application and R6000 for a joint application.
2. A Legal Fee charged by an attorney to bring the application to court, and can range from R500 to R6000 depending on where the application is brought and if credit providers oppose the application. We will let you know the exact amount before you decide to apply.
3. Thirdly there is a monthly aftercare fee that is included in the monthly debt installments made by the consumer. This aftercare fee is calculated as 5% of the monthly affordability amount. So I you can afford to offer your creditors R6000pm, the after care fee will be R300pm. This amount will never be more than R400.00 excluding VAT.
What is the process of applying for debt review?
Complete the application form and sign it. The application form is called Form. The form 16 must be submitted to us plus supporting document. As soon as we receive your form 16, you are protected from creditors.
The debt counsellor will determine what you can afford to pay to your creditors each month and work out a new repayment schedule. This schedule will be presented to creditors
When all the creditors have accepted your schedule, we present this document to the magistrate court. This document will then be legally binding by all parties until the last payment on the schedule is made.
How does one apply for debt review?
Contact us to apply today by completing form top right of page.
It is such a simple and easy process – and if you are overly in debt, also a very necessary process and step to take. The application process will be explained to you and we will assist you throughout every step of the application. Within 5 days no legal action against you from creditors will be possible because being under debt review provides you with immediate protection. This will give you and our debt counsellors time to review your finances and come up with a payment structure that will work for you.
-We are one email or phone call away- If you start with the application process today, by next week this time you will start experiencing the benefits of being under debt review. You will finally be able to continue with your life without the pressure of creditors constantly calling you.
We look forward to your call.
Tel: 076 514 3756
Tel: 012 743 6057