10 Apr Debt Help is Here, Make Use of It!
Are you struggling with debt in South Africa? If yes, you are not alone. Many people find themselves drowning in debt and unable to pay their bills. Fortunately, there is a solution to this problem, and it’s called the debt help system. The debt help system, also known as debt review, is a financial rescue plan for people dealing with too much debt. It helps you regain control of your finances and eventually achieve financial freedom. In this blog post, we’ll discuss how the debt help system works in South Africa, the fees involved, and why you should make use of it.
How the Debt Help System Works in South Africa
The debt help system in South Africa has seven steps that start by finding a registered debt counsellor. True North Debt is a great option as we are registered with the National Credit Regulator (NCR) and have over ten years of experience in helping people get out of debt.
Once you find a debt counsellor, you complete a debt review application and formally apply for debt review. Your debt counsellor assesses your application’s viability and initiates the formal debt review process if eligible. They examine your financial condition, including income, expenses, and outstanding debts, to create a comprehensive overview of your financial standing.
Armed with a clear understanding of your finances, your debt counsellor initiates negotiations with your creditors on your behalf to secure more favourable terms, such as reduced interest rates and extended repayment periods. Once negotiations are successful, a debt review order is obtained from the National Credit Regulator (NCR), confirming that you are undergoing debt review and providing legal protection against creditor actions.
Under the debt review plan, you begin making monthly payments to your debt counsellor, who acts as an intermediary, distributing these payments among your creditors according to the negotiated terms. Over time, as you consistently make payments, your debts will gradually be repaid. The debt review process typically spans several years, and as each debt is settled, your financial burden diminishes, eventually leading to full debt freedom and improved financial stability!
Fees Incurred in the Debt Help System
Now that you’re more familiar with the debt help system, you are probably optimistic and ready to start this journey to your financial freedom. However, you might be wondering, “How much does all of this cost?”
Fortunately, the debt review process does not cost an arm and a leg! The fees for debt review are regulated by the NCR, and every debt counsellor may charge different fees based on their experience. The costs for a debt review are typically made up of three fees. First, there’s a fixed fee when you apply for the review. Then, there’s a one-time fixed administration fee. Lastly, there are ongoing administration and aftercare fees, which usually add up to 5% of your monthly payment, but not exceeding a certain amount.
It’s important to note that several factors influence the cost of a debt review in South Africa. Firstly, your total debt amount plays a significant role, as more debt requires greater negotiation efforts from the debt counsellor, increasing costs. Secondly, the complexity of your case and longer review durations also contribute to expenses. Lastly, if a court application is necessary to enforce the repayment plan, it can further raise the overall cost.
Make Use of the Debt Help System Today
If you’re struggling with debt, don’t wait any longer. The debt help system is here for you, and it’s your best chance at achieving financial freedom. Remember that debt review is a legal process that can help you manage your debt and avoid legal action from your creditors. By making use of the debt help system, you can regain control of your finances and live a stress-free life.
True North Debt is a great option for anyone looking for a debt counsellor in South Africa. We have a team of experts who can help you through the debt review process and ensure that you achieve financial freedom. Don’t hesitate to contact us today to get started on your journey towards financial stability. Remember, the debt help system is here for you, so make use of it!