Debt Review for Self-Employed: How It Works

16 Sep Debt Review for Self-Employed: How It Works

Posted at 15:59h in Latest News by

Being self-employed does not mean you cannot benefit from debt review. The process for formally employed or self-employed individuals is largely the same. The main difference will be the type of proof of income required. Our True North Debt team will guide you through the application based on the kind of work you do, so that you can manage the process without difficulty. The goal is the same for all individuals seeking our services: to become debt-free!

For the most part, debt review is available to self-employed and traditionally employed individuals who are over-indebted. Here are 5 signs you need debt-rescue (and what to do about it).

What We Mean by Self-Employed

If you do not receive a fixed salary or pay slip from an employer, but instead run your own business, you are considered self-employed. This could mean you run a sole proprietorship, work on freelance projects, or earn an income through contracts. You may run a formal or informal business, working from home or at different sites. Wondering how much you can save each month? Calculate your new debt repayments in seconds.

Applying for Debt Review

When you apply for debt review, we will consider your living expenses, debt repayments, and your proof of income (which differs depending on the nature of your job). Using this information, we assess your overall financial situation to present you with a realistic repayment plan. To qualify and receive the benefits of debt review, you must earn a consistent income so that your monthly debt review instalments can be maintained.

Debt Review for Self-Employed: How It Works

Proof of Income Options when Self-Employed:

  • Financial records: For example, bank statements for a steady period between 3 and 6 months, which reflect your income and deposits.
  • Invoices and proof of payments: These can demonstrate that you provide services or products to clients and receive payment from them.
  • Financial statements: Available income statements, profit/loss reports or management accounts of your business give insight into your business’s financial health.
  • Tax Returns (IR12 or Provisional Tax Submissions): Your most recently declared annual earnings to SARS are a credible source.
  • Contracts or Service Agreements: This can prove that you earn an ongoing income, and include retainers, signed contracts, or letters of engagement.
  • Cash Flow Projections: If you earn a seasonal or project-based income, a projection (backed by historical records) can be considered.

Start your Debt Review Journey

All our Debt Counsellors are registered with the National Credit Regulator (NCR). We assist individuals in overcoming their debts, and we can help you if you are self-employed and earning a steady income. Our team specialise in this form of government assistance for debt relief and are here to help you achieve your goals. CONTACT US today to get started.