In the paragraph, we are going to be looking at the meaning of debt review in more detail. So many users seem to have heard the term but would like to know more about this and what it means. So, without further a due, let’s jump right into the meaning of debt review.
Debt Review as formulated through the National Credit Act, which stated the following. Debt Review is a process in terms of the National Credit Act for over indebted consumers. The purpose of the act is to protect the over indebted consumer against Credit providers. During the debt review process the debt counsellor will draw up an income and expense document and thus determine how to compile a debt repayment plan.
Firstly, there are various steps to get the debt review process started and we have outlined the 5 steps on the website as well. Secondly, feel free to contact us at any point if you do need more information or would like to apply for debt review.
If you feel you are over indebted you would need to contact a debt counsellor to do this application. Contact us to provide you with assistance.
You will apply for debt review by completing and signing a Form 16. Keep your ID, latest payslip ready as well as the latest statement of each creditor. It is very important that you provide the debt counsellor with ALL your creditors.
The debt counsellor will inform all creditors and credit bureau that you have applied to be under debt review. From this stage your creditors will not be allowed to take legal action against you for the following 60 days. This is only valid if a creditor did not already start with legal steps.
The creditors will need to supply your debt counsellor with outstanding balances and initial contracts (where applicable).
The final step will be for your debt counsellor to assist you with your budget (income less expenses) and to determine what amount will be available for distribution on a monthly basis to your creditors.
There are quite a few benefits debt review provides and since we get asked this question allot, we decided to outline these benefits for you of going under debt review. Read more on our blog.
Firstly, the biggest benefit of debt review is that you will only have to pay one fee that will cover all your expenses regarding your creditors.
Secondly, once you are registered for debt review, it will entail that you do not have to deal with any contact from your creditors and the debt counselling company will take control of that for you.
Thirdly, another big benefit is that the NCR protects you from being blacklisted. This will immensely benefit you, since blacklisting is another issue that you do not have to deal with.