15 Jan Unlocking Financial Freedom: A Closer Look at Debt Review
Are you tired of calls from creditors pinging your phone all day long? Has debt become insurmountable, with no clear way out? There is a fix for debt. It won’t change your circumstances overnight, and your debt won’t magically disappear, but there is a way–called debt review. Debt review is a process where an expert looks over your credit details and negotiates your debt to one discounted monthly payment you can handle.
This article takes a closer look at the process of debt review and how it unlocks protection from harassment, blacklisting, legal action and unlocks financial freedom.
What Is Debt Review?
Debt review is formally known as a process called consumer debt restructuring, a legal process whereby a National Credit Regulator-approved registered debt counsellor to individuals way over their heads in debt.
When under debt review, your finances are restructured and debt is reconsolidated into a single discounted repayment plan tailored to your income and expenses. Your counsellor negotiates with creditors to reduce interest rates, extend repayment terms, and potentially even lower your debt amounts.
How Does Debt Review Work?
Step one: Contact A Debt Counsellor
Acknowledge that you’re under extreme financial stress and need help. It’s nothing to worry about or be ashamed of. Debt counsellors are there for exact situations like this.
Step two: Assessment and Application
The counsellor will analyse your income, expenses, overdraft, credit, loans, and any other debt. Based on this, they will calculate a repayment plan and strategise how to negotiate with creditors.
Step three: Negotiation
Once you have applied for debt review, you will have sixty days in which creditors or people who have loaned you money are unable to take legal action (unless any has previously been initiated) against or harass you. Your counsellor will negotiate for interest decreases, or even total debt write-offs.
Step four: Court Order
Once your creditors agree to the proposal, the paperwork will be submitted to the South African National Credit Regulator for approval. Once approved, no creditor will be able to take any action against you.
Step five: Repayment
You then begin to make your consolidated discounted monthly repayment, which can take anywhere from three to five years (or more.) After your debt is repaid, your debts are paid, and your name is cleared from the National Debt Register.
Now that you understand debt review and all it encompasses, take control of your financial freedom again.
Get in touch for further information and advice today and get your financial freedom back.