The financial climate in South Africa is often a challenging one, and many individuals in our country have to face the realities of these challenges as their expenses and debts mount out of their control. Debt is an ugly word, and most of us have to face up to it at one point or another. But for those that feel the pressure of being under its boot, debt can feel more like a life-sentence than passing hump. Fortunately, there are ways in which debt-stricken individuals can turn things around while still staying within their own means; debt review. But what is it? How does it work? And who is it for?
What is it?
Debt review is a legal process whereby an indebted individual has their finances monitored in accordance with their debt, in order to devise an alternative, though achievable payment plan aimed at ridding them of it. The process was conceived by the National Credit Act in particular for South African consumers who are in debt. The process is generally conducted by a debt councillor
How does Debt Review Affect a Credit Rating?
Once you have settled your debt through a debt review process, you will be issued with a clearance certificate that will also be issued to credit providers, who will have 5 working days to update their records in accordance with NCA guidelines. However, this will still have a negative effect on your credit rating (since your approach to payments would have changed), and according to the Credit Act, it will be around 2 years before this changes. However, the credit bureaux should update your credit status within around six months.
Who is it For?
Debt review is often a necessary process for individuals or institutions that have accrued large amounts of debt, and for any number of reasons will not be able to honour them in the foreseeable future.
Contact Scheepers Pretorius for Assistance
If your debt is mounting and it seems out of control, why not contact a representative from Scheepers Pretorius Attorneys today and ask us for more information on our debt review services. Alternatively, feel free to browse our website for additional information on our offers.