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Man discovering the benefits of Debt Review

What are The Benefits of Debt Review?

Debt Review, also referred to as Debt Counselling, was first introduced in 2007, by the National Credit Act 34 of 2005 (NCA). The process was designed to help over-indebted consumers who were unable to pay their monthly debt payments. Debt Review is one of the most effective debt solutions for consumers who are over-indebted. Debt Review not only provides immediate relief from creditors, but it also helps you pay off all your creditors so you can enjoy your financial freedom. 

What exactly is Debt Review?

As mentioned above, Debt Review is a government legislated process that forms part of the NCA which was created to help and protect people who are struggling to meet their monthly debt repayments.

Under Debt Review, your debt counsellor will formulate a new affordable monthly repayment plan by taking into account all of your income and expenses. Your debt counsellor will then negotiate with your creditors to reduce your monthly repayments (in some cases by up to 50%). Your debt counsellor will aim to ensure that your interest rates, as well as your monthly repayments are reduced, helping you pay back your creditors and become financially free within a period of 60 months or less.

Debt Review enables you to manage your costs of living and regain your financial freedom.Below, we look at the advantages of Debt Review:

The Benefits of Debt Review

  • Legal protection from creditors 

Once you are under Debt Review, you and your assets are legally protected from repossession by the NCA. This means that your creditors cannot hassle you by calling and demanding payment. Your creditors will be legally required to communicate with your debt counsellor and may not contact you directly. 

  • One fixed monthly payment

Your debt counsellor will negotiate with all of your creditors and formulate a single, reduced monthly payment. This means that you will no longer have to make multiple payments to your creditors. You will only be required to make one fixed monthly payment , which will then be split across all of your creditors by your debt counsellor. What is important to note, is that this fixed monthly payment can be reduced by up to 50% of your previous combined monthly repayments.

  • You won’t pay more than you can afford

One of the main goals of the Debt Review process is to help you pay off your debt whilst enabling you to manage all of your other living expenses. This means that your budget will meet your basic needs first before provision is made for your debts. 

  • No blacklisting 

Whilst under Debt Review, you are protected by the NCA from being blacklisted. The credit bureaus cannot blacklist you and once you have completed the Debt Review process, there is no permanent record indicating that you have ever been under Debt Review.

  • No up-front fees

With Debt Review, there are no up-front fees. Your debt counsellors fees are included in your single monthly payment. Debt Review fees are regulated by the National Credit Regulator (NCR) so the fees will generally be the same for all debt counsellors. 

At Debt Movement, we know that bad debt happens to good people and that most of the time it is unavoidable. Our goal is to help you on your journey to financial freedom. Our debt counsellors have used the Debt Review process to help thousands of people manage their debt and find financial freedom. We are here to support and guide you through the Debt Review process so you can rebuild your finances. All you need to do is contact us, and then we will guide you through the process.