Reasons for Applying for Debt Review

Published by The National Debt Review Center on

Top 5 Reasons for Applying for Debt Review in South Africa

The National Debt Review Center

Introduction

In the face of rising inflation and aggressive interest rate hikes, many South Africans are grappling with increased financial strain. The demand for debt counselling rose by 30% in the third quarter of 2022 compared to the same time last year. This is where debt review comes into play.

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What is Debt Review?

Debt review is a debt solution that assists over-indebted consumers to regain control of their finances. It was written into South Africa’s National Credit Act (NCA) about 15 years ago to assist consumers buckling under the pressure of debt.

Reasons for Applying for Debt Review (Benefits of Debt Review)

1. Affordable Monthly Repayments

One of the primary reasons for applying for debt review is to afford your monthly debt repayments as well as your everyday living expenses.

2. Consolidated Payment

Debt review offers a consolidated payment plan, which covers all your debt, making it easier to manage.

3. Protection from Creditors

Debt review can protect you from creditors and debt collectors. This means your assets will be safe from repossession if no legal action has been taken before your debt review application.

4. Path to Freedom from Debt

Debt review offers a structured approach to becoming debt-free. It is not an immediate solution, but rather a commitment for the long haul.

5. No Permanent Record

There is no permanent record of your debt review status. Once all debts under review are settled in full, a debt counsellor will issue a certificate clearing you from debt review.

Reasons For Applying For Debt Review

Why is NDRC your best bet when you are considering debt review?

The National Debt Review Center (NDRC) is a highly recommended choice for debt review for several reasons:

  1. Expertise in Debt Counselling: NDRC specializes in debt counselling, helping you manage your debt, reduce repayments, and achieve financial freedom.
  2. Free Consultation: NDRC offers free consultations, providing you with an opportunity to understand the process and its implications before you commit.
  3. Protection and Negotiation: NDRC provides immediate protection to you and your assets, including your house and car. They negotiate with your credit providers directly, so you don’t receive any more harassing phone calls.
  4. Debt Review Removal and Clearance Certificates: NDRC assists with debt review removal and issues clearance certificates once all debts under review are settled.
  5. Credit Checks and Repair: NDRC conducts credit checks and offers credit repair services, helping you rebuild your credit score.
  6. Positive Client Testimonials: NDRC has received excellent reviews from clients for their professional service and assistance.

In addition to their expertise and comprehensive services, NDRC stands out with their innovative “My Pocket Debt Counsellor” app. This first-of-its-kind tool in the debt review industry allows you to monitor your debt review progress, apply for services, and receive expert guidance directly from your mobile device. The app provides real-time updates, educational resources, and even a referral program. This commitment to innovation and customer service makes NDRC a leading choice for those considering debt review.

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Conclusion

While debt review is not a quick fix, it is a viable solution for those genuinely struggling to make ends meet every month due to debt. It covers an unlimited amount of debt, and your credit score is irrelevant even those who have been blacklisted are eligible to apply. Remember, it’s in your best interests to pay off all of your unsecured debt once you commit to the process.

Frequently Asked Questions

Why do people apply for debt review?

People apply for debt review when they are unable to pay their debts owed to creditors. Debt review is a legal process that helps over-indebted consumers manage and repay their debt. A debt counsellor negotiates with creditors to lower interest rates and monthly installments, making the debt more manageable.

How do you qualify for debt review?

1. You must be over 18 years old.
2. You must have a consistent income, whether from employment, a pension, or other reliable sources.
3. Your debt must be from South Africa.
4. If you’re married in community of property, your spouse will need to agree to and be part of the debt review process.
5. You must be over-indebted, meaning you cannot reasonably afford to repay all your debts. A debt counsellor will assess your financial situation to confirm this.
6. You cannot be under sequestration or already under debt administration.

What are the disadvantages of debt review?

1. Not all debts may be included, especially those which have been subjected to legal action.
2. Your debt may take longer to repay due to smaller monthly payments.
3. You will not be able to apply for new credit while under debt review.
4. You will be listed on the credit bureau.
5. You will be liable for paying debt counselling fees.

What is a proof of debt review?

The following can be classified as proof of debt review.

1. Welcome letter from your debt counsellor which will include the determination of over indebtedness.
2. 17.1 Document
3. 17.2 Document
4. Proposal Sent & Accepted by creditors
5. Debt Review Court Order

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The National Debt Review Center

Welcome to The National Debt Review Center, where financial stability and integrity are our guiding principles. We strive to deliver the utmost best in customer service & act with the highest standards of integrity. We are South Africa's best Debt Counselling & Debt Review Removal Company. NCR Registration Number - NCRDC3106

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