South African consumers that are in debt have the right to apply for a legal, recommended service and process called debt review to get rid of their debt, according to Neil van der Walt, marketing manager, DebtSafe.
Van der Walt said that the debt review process helps consumers when they can’t make ends meet, to keep up with their debt payments.
Charnel Collins, CEO, National Debt Advisors (NDA) said that under the debt review, a qualified debt counsellor negotiates a single, low monthly instalment for all debt obligations.
The new repayment structure will take into account all of the existing household expenses that a consumer has, while allowing the consumer to pay off their debt, take care of their current expenses and still live a comfortably life.
The ultimate goal of the programme is to allow consumers to reach a stage where they have paid off all their debts and can leave the programme with a fresh start in the credit world.
Here’s a look at how the debt review process works:
– The debt review process starts with a consumer approving the process and completing the application form (Form 16).
– The process then goes through administrative procedures that are handled by a registered debt counsellor.
– Then the National Credit Regulator (NCR) will issue a clearance certificate to complete the process.
– Finally, this certificate is submitted to the credit bureaux who will then remove the debt review flag which sets their credit score back to zero.
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