Is debt review the same as being put under administration?

No. Administration only applies to consumers whose total debt do not exceed R50,000 and normally lasts much longer and is much more costly. We aim to achieve a debt free status within 36 to 60 months.

If you’re struggling with debt and unsure about the best solution, understanding the differences between debt review and administration is crucial. Debt review is a structured process designed to help you become debt-free within 36 to 60 months, while administration is more costly and only applies to debts under R50,000. At Zero Debt, we are committed to providing you with the best possible guidance and support to achieve financial freedom efficiently. Contact us today to speak with one of our expert consultants. We’re here to help you navigate your options and find the solution that’s right for you. Reach out through our contact page to get started.

FAQs and Answers

1. Is debt review the same as being put under administration?
   No. Debt review is a structured process to help consumers become debt-free within 36 to 60 months, whereas administration applies only to debts below R50,000 and is more costly.

2. How long does debt review take compared to administration?
   Debt review typically lasts between 36 to 60 months, whereas administration can take much longer, making debt review a more efficient solution for managing debt.

3. Who qualifies for administration instead of debt review?
   Administration applies only to consumers whose total debt does not exceed R50,000. If your debt is higher, debt review is the recommended option.

4. Why is administration more expensive than debt review?
   Administration includes high fees and interest rates, making it more costly over time. Debt review is a more structured and affordable alternative.

5. Can I apply for debt review if my debt is below R50,000?
   Yes, debt review is still an option for debts below R50,000. However, the best solution depends on your financial situation. Consult a debt expert for advice.

6. Which option provides better legal protection—debt review or administration?
   Debt review offers protection under the National Credit Act, preventing creditors from taking legal action. Administration does not provide the same level of protection.

7. What happens if I cannot afford my debt repayments?
   If you are struggling to meet your debt obligations, debt review can help you restructure your payments into a single, manageable monthly repayment plan.

8. How can I find out if debt review is right for me?
   Contact Zero Debt for a free assessment. Our consultants will evaluate your financial situation and guide you toward the best debt solution.