Not being able to pay all your debts is a stressful and unpleasant situation to be in. You are constantly worrying about how you are going to pay everyone this month, avoiding calls from your creditors and always borrowing money from friends to just pay for the basic things like food and transport costs. But, there is a solution for you! Debt review is South Africa’s most successful and leading process for over indebted people. But before signing up, here are 5 things to look out for when deciding on Debt Review.
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What is Debt Review
In 2007, The National Credit Act implemented debt review as a legal debt relief process. If you are over-indebted, your debt counsellor will propose a debt repayment plan to your credit providers. This plan constitutes a legally binding court order and will allow you to repay all your debts at a lower affordable monthly installment often at a significantly lower interest rate.
1.Read the legal clauses.
Never sign a document in which the legal costs are not capped. What this means is if a service provider does not capp the legal costs of the process, YOU can end up paying a massive amount for legal fees where you could have been spending that money paying your debt off faster.
2.Pay the right person.
Once you are under Debt Review, make sure you are paying the new installments into an account belonging to an official PDA (Payment Distribution Agency). Here is a list of their names linking to their websites, where you find out more about each of them and their banking details:
b) DC Partner
c) National Payment Distribution Agency
Fill in this form and we will send you the banking details of each PDA & a bit more information on each of them:[contact-form-7 404 "Not Found"]
3.Never change the banking details.
Never ever change the banking details of the PDA! It is very important to always pay your installments to the same account with your correct reference. It happens so many time that people go under Debt review and then they get asked to change the account details they pay their monthly installment to. That money never goes to your creditors and you end up where you started or even worse, you are in more debt and your assets are repossessed because you did not stick to your court agreement. Think of it in the same way of your bank. Your bank will never ask you to change or give sensitive information over the phone of via email, so why should your debt counselling company ask you to do so?
4.Is the Debt Counselling Company Legit?
Do your own research. This is so important! There are people out there claiming they want to help you but, they only want to rob you of your money. Ensure that the Debt Counsellor/company is legitimately registered. The NCR (National Credit Regulator) is there to protect your rights. You can contact then to find out if a company is legally registered and are able to assist you with your Debt review application. Read through the companies’ testimonials, not only on their own website but others sources as well (social media & online reviews). Ask your Counsellor to refer you to a client they have helped before. Give them a friendly call to find out how their experience have been with the company.
5.Be aware that you are getting the right advice.
This means your budget must be fair and realistic. People will try to sell you a lower monthly payment to get you to use their services. This might be tempting at first and sound very good but, the court may decide to change the lower installment mentioned by the Debt Counsellor. You then risk paying a lot more and you won’t be able to walk away.
So make sure before you start deciding on Debt Review that you are getting what is best for you. At the end of the day you want to become debt free as soon as possible and with no problems along the way. Remember “knowledge is real wealth”
Fill in the form if you want one of our advisers to assist you with any question you may have.