Debt Review: Advantages and Disadvantages. There's so many questions and controversy around Debt Review as a debt relief solution in South Africa. The primary question is whether it is really advantageous to consumers or not. Debt Review may be the ideal remedy for some consumers, but for others, it is a nightmare rather than a debt relief solution.
What exactly is Debt Review?
Over-indebted and behind on your debt payments? Debt review might help you safeguard your assets by developing a structured, manageable repayment plan for your outstanding debt.
How will the payment plan be calculated?
Based on your circumstances, a debt solution firm consolidates all your debt into one monthly payment and lowers your interest rates.
The National Credit Act includes debt protection. If you are under debt review, credit companies cannot take legal action against you. This implies that, in addition to protecting your assets, you will pay less for your debt monthly. Your decreased monthly payment will include all costs.
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Easy and Affordable Payment Plan
We assist our customers in constructing a repayment plan that is easy and affordable to sustain for the remaining payment period without any further financial burdens. Which is a simple procedure focused on getting you out of debt that is straightforward and effortless.
Immediate debt relief with lower interest rates
The Debt Review Programme provides immediate relief from your financial difficulties by offering a reasonable monthly payback plan with lower interest rates. We negotiate lower interest rates from your credit providers, decreasing your total payback amount.
How Can Debt Review Help Consumers?
The
National Credit Act of 2007 established debt review, often known as debt counselling. The South African government outlined the method for its citizens to restructure their debts with a licenced counselling authority Through debt review, thousands of South Africans have saved their homes, credit, and livelihoods. While it is not right for everyone or in every case, you should never dismiss it as a solution for resolving your financial problems.
PROS AND CONS OF DEBT REVIEW
ADVANTAGES (PROS) OF DEBT REVIEWSince its inception, debt review has had a tremendous influence on the lives of a lot of South Africans, and the process can do the same for you.
1. Lower Monthly Payments
The main objective of debt review is to provide over-indebted consumers with a sustainable payment plan for their debts. If you are unable to fulfil your debt payments while still meeting your living expenses, movable and immovable assets will usually be seized and sold on auction. Debt review will lower your payments to a level that doesn't interfere with your capacity to live.
2. Payment Consolidation
One of the most difficult aspects of having a large number of debts to pay is the possibility of accidentally skipping a payment. It may be tough to keep track of many credit cards and loans that may have originated from different lenders and missing one might have substantial ramifications. A single payment will be made to the distribution company appointed by your debt counsellor through debt review.
3. Creditor protection
Once the debt review process is initiated, the debt counsellor will be in charge of engaging with all creditors. Indeed, creditors are prohibited from contacting you directly.
4. Assets are safe, and legal action is averted.
To be eligible for a debt review, you must first go through debt counselling. And, as long as a debt counsellor judges that you are over-indebted, you will be afforded some protection from credit companies during this time. If the debt counsellor decides after the evaluation that the consumer will be unable to satisfy his or her debt commitments, that individual may be called over-indebted.
5. A Structured Path to a Debt-Free Life
Debt review will provide you with access to a debt payment plan that is suited to your income and financial obligations. This plan has been designed expressly to streamline the entire process and make monthly payments affordable. While it takes devotion and effort, once you've done the work, you're certain to enjoy a debt-free tomorrow.
6. No permanent record of the debt review status.
There is no permanent record of the Debt Review process in any consumer bureau database. There is no permanent record of your engagement in the process, unlike other paths of administration. When you are certified debt-free, your debt review status will be eliminated.
DISADVANTAGES (CONS) OF DEBT REVIEW
Before signing up for debt review, it is also important to understand the disadvantages of the process. Furthermore, we include these things because they are seen as disadvantages by some, but a deeper study indicates that some of these disadvantages might be considered advantages instead.
1. Fees for Debt Review
There are charges associated with going through the process of debt review. Fortunately, the National Credit Regulator (NCR) regulates these costs, which are included in your repayment plan. Paying tiny extra service costs in such a dire financial predicament might be challenging for individuals.
The great consideration... Debt Review or Not?
However, while considering whether to take advantage of debt review services, it is important to consider the advantages. In the end, the cost of losing your car, your house, or other valuable items may far outweigh these limited fees.
2. Credit obstruction
Upon commencement of the debt review process, a notification is sent to all credit bureaus, suspending the consumers' ability to get new credit. The consumer/s will not be allowed to incur new debts until they are debt-free. While some may consider this a constraint, it's clear to understand why it's in place and how it may safeguard you from wasting your newfound financial independence while also speeding up the recuperation process.
3. It may not protect against all debts.
When the debt counselling process starts, the NCA and your debt counsellor will safeguard you from creditors, lenders, and other financial institutions. You will not default on any of your payments if you make your unified and consolidated payment to the business with whom you are working. However, debt review would not protect you if a creditor has already initiated legal action against you.
Cure Debt’s Debt Relief Specialists will safeguard you against the actions of creditors that cannot form part of the Debt Review Process.
Debt counselling, on the other hand, may still shield you from the repercussions of not paying your other obligations by combining them into a new payment plan. Waiting until one of your creditors comes after you is a serious mistake, but waiting until other creditors follow suit is much worse.
4. Not Always Applicable: Affordability problems? Not a problem for Cure Debt – We house all the different Debt Relief Solutions under one roof and will have another solution ready should you not be viable for Debt Review…
In many circumstances, consumers are unable to apply for financial relief. For example, only individuals who are over-indebted may petition for debt review. If a Debt Counsellor evaluates your financial situation and determines that you are not over-indebted, which means that you can pay your present bills with reasonable discipline, then you are on your own.
Only if you use any other company but Cure Debt. Remember, we have all possible debt relief solutions allowed under South African law under one roof. We are the answer to your financial difficulties. If there's a debt relief solution out there, we will find it.
5. No Income – No Debt Review?
Unfortunately, this can be a problem unless you consider one of the other debt relief solutions available to you. Furthermore, you cannot submit for debt review unless you have a consistent household income to base your plan on. People with no income often need debt relief the most, but debt review is not an option for them.
Examining the Advantages and Disadvantages of Debt Review
If you are over-indebted, you may not have as many alternatives for resolving the issue as you would think. When all the advantages and disadvantages of debt review are considered, the benefits surpass the disadvantages and ensure a successful solution. Of course, you'll be able to take advantage of the security it offers, spend less money than you're presently paying, and even live stress-free from creditor harassment.
Becoming Debt-Free and changing your spending habits
After all, getting out of debt is as much about changing your spending patterns and developing your budgeting skills as it is about paying off your bills. So, it probably is time to address your debt problem, and the best method to do so is to do a debt review.
Denied Debt Review – No Problem – Cure Debt offer all Debt Relief Solutions under one roof. We can help you not only with Debt review but any other Debt Relief Solution available in South African Law. We’ve got it all. Call the leaders in Debt Relief Solutions today. We truly can help you become Debt Free.
Debt Review: The Final Verdict
While there are some downsides to debt review, the most significant negative is the possibility that you may not qualify. While it is sad that you may be denied debt relief, those who qualify will find that the benefits far exceed the negative consequences. It is also possible to avoid legal action by being pro-active and requesting an assessment of debt review as soon as you realise, you're over-indebted. If you are concerned that you are over-indebted, contact us right away to find out whether you qualify for debt review.
Finding a Debt Relief Specialist: PLEASE HELP!
