Get ready to dive into the ins and outs of this important process.
A step-by-step guide to debt review is long overdue. In South Africa, the number of people and families experiencing financial difficulties is staggering. Therefore, there is a need to fully understand the debt review process.
This comprehensive guide to the debt review process provides a step-by-step breakdown to help you gain a clear understanding of the process and the advantages it offers to individuals and households.
What if the process is not the best debt relief solution for you? Are there any alternatives?
It is possible that debt review is not the most appropriate debt solution for you; however, sequestration may be a more viable alternative. Nevertheless, I recommend that you consult with a debt solutions expert to get an in-depth understanding of both the advantages and disadvantages of these processes.
CureDebt is a highly reputable service provider that specialises in a comprehensive range of debt relief solutions, all of which are fully compliant with South African law.
We are NCR accredited DEBT SOLUTION EXPERTS. Because of this status, we are able to provide you with all of the prescribed and accepted debt solutions available under South African law. This pertains to both businesses and individuals.
When is an individual eligible for the process?
If you are unable to pay your creditors, you may be eligible for debt review. The
National Credit Act introduced the legal term "debt review." You can only be placed under debt review by an NCR accredited Debt Counsellor.
It means you have proven that you are over-indebted and have agreed to make payments on your debts in accordance with the new terms arranged via your debt counsellor.
A distribution company will receive this payment in a single monthly installment. Your creditors will then receive payment according to the agreed-upon monthly payment plan. However, in order to achieve this, the NCR has accredited and acknowledged numerous distribution companies.
Are creditors able to pursue legal action for outstanding payments while I am under debt review?
Creditors do not take legal action against individuals under debt review. Remember, you can include a summons if an attorney is already involved in the collection process, but only if the creditor accepts the offer from the debt counselor.
Is it possible to obtain new credit while currently under debt review?
No, the debt review process prohibits you from accumulating additional debt and requires you to make the agreed-upon payments. The majority of organisations register consumers with credit bureaus solely because they inquire about the process.
However, at Cure Debt, we don't list you for only enquiring about the process. If you contact us, we will conduct the assessment and even provide you with an installment; however, we will not submit any data to the credit bureau until you sign and accept the terms of the debt review process.
Can you explain what debt review means?
Debt review is also known as Debt Counselling. This debt solution assists over-indebted consumers in repaying their debt more effectively by matching their monthly debt payments with their current income, avoiding more debt from stacking up, and overseeing the process through a
licenced authority.
Who can apply for debt review?
Individuals who have an income-to-credit spending discrepancy and have no way to pay their bills on time are deemed over-indebted and can apply.
In layman's terms, this means that if you're expenses are more than your income, and you're struggling to service your debts, you are a good candidate for the process.
Does the debt review process really help South Africans?
Hundreds of thousands of over-indebted South Africans have been able to break free from crippling debt through debt review. This is a step-by-step guide to the debt review process.
By going through this Debt Review guide, you will get a broad understanding of the process, and what to expect when you choose to continue with Debt Review.
An overview of the debt review process
This is a complete, step-by-step guide to the debt review process:
1.
Contact a debt review company or counsellor to determine if you qualify.
2.
Gather financial records to submit to your debt counsellor.
3.
If you seek debt review in writing, lenders and credit bureaus will be notified to prevent creditor harassment and uncontrolled lending.
4.
A skilled debt counsellor negotiates and authorises your new payment plan.
5.
You will continue to pay an affordable rate while remaining protected.
6.
After completing your debt review, your debt counsellor will issue you a clearance certificate.
7.
Congratulations on being debt-free!
8.
It's far easier to go through this process than to continue carrying the burden of unsustainable debt.
If an unforeseen change in circumstances prevents you from making your required payments, it is imperative that you understand that you can submit an extension application. However, bear in mind that the creditors must ultimately approve it. They rarely do.
9.
After reviewing the summary, let's dive deeper into each process step.
A detailed walkthrough of the debt review process.
Numerous inquiries have been made about the debt review process. Consequently, we have developed this comprehensive, step-by-step summary of the debt review process.
1. Which types of documentation are required for continuing with the debt review process?
In order to complete a debt review application, you will be required to provide the following documentation:
Identity documents: Copy of your South African Identity document
Proof of income:
Normally, a payslip is sufficient.
Your debts: With your consent, the debt counsellor will obtain access to your credit profile. If your credit profile does not include any supplementary debts, you will need to provide account information and statements to include these creditors in your application.
Banking details: a copy of your bank-approved bank statement.
Living expenses: You will need to provide the debt counsellor with a comprehensive list of your monthly expenses, including rent, groceries, school fees, and any other expenditures that are separate from your debt repayment.
2. Contact a debt counsellor.
The National Credit Act is designed to reduce abusive lending and provide a method for over-indebted people to get out of debt. Debt counsellors play a crucial role in accomplishing this goal.
A debt counsellor analyses your financial circumstances: They will consider factors such as your income, debt, and living expenses to assess whether you are over-indebted.
They will then evaluate the best way to repay the debt in the future. The repayment plan they create allows you to cover your basic living expenses while paying off your debts.
Execute the debt review process: They file the necessary forms to petition for debt review, establish your protection from creditors, confirm over-indebtedness, and obtain court approval for the repayment plan.
Negotiate with creditors: All creditors will receive notice of your debt review application. They then require thorough records of your debt.
Finally, they negotiate a debt payback plan that you can follow. During this negotiation, they may reduce your total debt owed, lower interest costs, and adjust the payment timeframe.
Debt counsellors must be registered with the National Credit Regulator. It is critical that you cross-check their NCR ID number against the NCR database of debt counsellors.
Debt counsellors charge a fee for their services. Fees should be within NCR standards.
3. Apply for debt review.
As soon as you sign the official debt review application (Form 16), your debt counsellor notifies all creditors (Form 17.1).
At this point, two significant occurrences transpire. One, creditors can no longer pursue your debt through legal means. Second, you are not eligible for any further credit.
Your debt counsellor is going to submit Form 17.2, which confirms you are over-indebted. If you want to withdraw from the debt review process, do so before this stage.
What do our clients think of our services?
CureDebt clients highly regard the firm as the leading authority on debt relief in South Africa due to our genuine concern for our clients and unwavering commitment to customer satisfaction.
Take a look at our Hello Peter reviews to get an idea of what previous customers have to say about our service.
AT CUREDEBT WE PRIORITISE SERVICE DELIVERY Providing excellent customer service is our primary focus. We prioritise our clients and treat them with the greatest regard, recognising their significance as our most valuable asset.
Our clients can expect to receive outstanding service promptly.
CUREDEBT IS AN NCR-REGISTERED DEBT RELIEF SOLUTIONS EXPERT SERVICE PROVIDER.
Steer clear of those that aren't authorised NCR-registered debt relief solutions service providers. It really is that simple.
The National Credit Regulator (NCR) monitors debt relief solutions practitioners, so any practitioner specialising in these solutions must be NCR-registered.
I'm still wondering if you made the right choice.
Are you still unsure about the arguments that support our claim that CUREDEBT is the most effective debt relief provider in South Africa? Kindly contact us by telephone. You can determine if our promises to help you overcome debt and find happiness are true.
Why cure debt?
Cure Debt is the ultimate debt relief solution to your unique debt problem. With a
proven track record, we are proud to say that we can help you become debt-free.
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We collaborated with a variety of professionals who are experts in their chosen fields in order to provide our clients with the highest quality of service. With a combined experience of over a century.
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