Drowning in debt? Grab this lifeline

Debt Review: Your Financial Lifeline Out of Overwhelming Debt

There are 19million credit-active consumers in SA, of whom about eight million have impaired credit records. Around 14% of these have judgments recorded against them or are under administration. Since June 2007 this figure has steadily grown as the demand for credit increases.

Most consumers in SA cannot carry the burden of their debt in relation to their income

the demand for debt counselling and debt review rose this month. The promulgation of the National Credit Act has forced creditors to grant credit under stringent assessments, but many lenders continue to grant credit recklessly, while many consumers are not cutting back expenditure or ranking which expenses are essential and which are not.

Debt review offers consumers a lifeline. Consumers who are over-indebted and cannot meet their monthly debt obligations may approach a registered debt counsellor for assistance. Once a financial assessment has been concluded and the consumer is found to be over-indebted, his monthly instalments can be reduced so he pays only what he can afford.

Bonds, car repayments, credit cards and all credit facilities may be included under debt review. Debt review offers consumers the opportunity to restore their financial standing while keeping their assets (creditors may not remove consumers’ assets nor litigate while the debt review process is before the court).

Now is the time to act if you are feeling the strain of your debt obligations. Should you not meet your monthly contractual debt obligation, creditors will take legal action, then it is sadly too late for debt review.

It is not worth the risk of losing your property or being sequestrated when a lifeline such as debt review has been put in place to protect consumers and reduce their monthly debt obligations. Debt review is a benevolent process engineered to assist the man in the street – take advantage while you can.

Are you drowning in debt and feeling overwhelmed by financial obligations? Take action today and explore how debt review can help lighten your load. Our experienced team at Zero Debt is here to guide you through the process, offering a lifeline to restore your financial freedom. Contact us now for a free, no-obligation assessment. Don’t wait until it’s too late—take control of your financial future today.

FAQs and Answers

1. What is debt review and who qualifies for it?
Debt review is a formal process that helps over-indebted consumers by restructuring their debt repayments. If you cannot meet your monthly obligations, a registered debt counsellor will assess your finances to see if you qualify.

2. What types of debts can be included under debt review?
Most credit-related debts such as bonds, car finance, credit cards, and store accounts can be included. Medical bills or debts with court judgments cannot be included if legal action has already begun.

3. Can creditors take my assets while under debt review?
No, once the process is formally underway and the matter is before court, creditors are not allowed to repossess assets or initiate legal action.

4. What happens if I delay applying for debt review?
If you miss payments and legal action is initiated before applying, those specific accounts might be excluded. It’s best to act early.

5. Does debt review lower my monthly payments?
Yes, the process restructures your debt to match your affordability. This means reduced instalments and often lower interest rates.

6. Will my credit record be affected during debt review?
Your credit profile will be flagged to show you are under debt review. This is not a permanent listing and is removed once the debt is settled.

7. How long does the debt review process last?
The process typically lasts between 36 and 60 months depending on your repayment plan and the total outstanding debt.

8. Can I still apply if I have a stable income but high debt?
Yes, as long as you earn a regular income and struggle to meet monthly obligations, you are eligible to apply for the programme.