Debt review companies in South Africa will help you manage your finances correctly. If you have fallen into financial difficulty and have got to the point where you can no longer manage your debt alone. Then you are going to need the help of a professional counselor.
He or she will guide you through the complete debt review process. And how it works in South Africa so that you can get back to some kind of normality in your life.
Just let it be known that you are not on your own in this situation.
Thousands and thousands of regular South African citizens are facing or have faced similar financial difficulty to your own.
There are circumstances and situations that can cause and lead to these debt problems. So try not to continue stressing over your situation and do not feel ashamed.
Debt Review Companies – What’s Required?
The first thing that debt review companies require you to do as you begin the process is to fill out a form. Fill it out in detail and submit to your assigned counselor along with all of your credit agreements.
The counsellor will assess your situation.
They will determine if any of the creditors you have business with may have been reckless in granting you credit to begin with.
This process will take about a month from the date that you apply.
Your newly assigned debt counselor will inform the credit bureaus and your credit providers of your application for review within five working days of your application.
An interim repayment plan will be arranged by the counselor through a registered payment distribution agency. So that you can carry on paying your credit providers throughout the process.
Once your accounts are formally “under review”, no legal action can be taken against you regarding your financial debt during the first sixty working days. This allows 2 months for different payment arrangements to be made between yourself and the credit provider/s.
A debt counselor needs to follow certain procedures to make a decision on whether you are “debt stressed” or “over-indebted”.
If you are found to be over-indebted, after forms are submitted. Your debt counselor will determine how much money you can realistically afford to pay each month towards your debt.
They determine this according to account balances supplied by the creditors. And of course taking into account you monthly income and living expenses.
New Credit Negotiations
Credit providers are negotiated with. They and your debt counselor from the review company work on a new and more affordable payment option.
Both you and your creditors must agree and accept new payment terms proposed by a counselor during the debt review process. Otherwise the counselor has to refer a recommendation to the magistrate’s court.
Should a magistrate conclude that a debt repayment plan for a specific individual be unreasonable. Then the court can reject the recommendation. In this case, the debt review process is effectively terminated.
When these things run smoothly, a new repayment option is agreed to by all parties. And a debt clearance certificate is issued to you once all debts are paid in full.
The debt review company will notify the credit bureaus that you are no longer having debt counselling. So this will not reflect on your credit record or financial history.
Loans and More Credit are not Wise
A word of caution. Various types of loans for persons under debt review in South Africa do exist but need to be avoided.
Micro finance and credit available from certain loan sharks is available without your credit record or certain personal details being scruitinised.
The reason you are reading this information in the first place is to get more knowledge on debt review companies in SA.
The correct process to follow to get you out of financial trouble. And the worst thing you could do now to make your life a whole lot harder is apply to borrow more money.