20 Sep Debt Review vs Voluntary Surrender
It can seem impossible to see the light at the end of the tunnel when dealing with debt and money problems. Overcoming debt can feel like an uphill battle, which causes many consumers to feel helpless. Debt Review and Voluntary Surrender are effective debt relief measures that help over-indebted South Africans rise above debt issues. Still, there are significant differences between both of these programs, and knowing what these are will help you choose the right solution.
Debt Review Summarised:
Debt Review is the debt help system for over-indebted consumers struggling to manage their financial commitments. This Debt Review process was introduced by the National Credit Act (NCA) and is managed by a registered Debt Counsellor. When you enter Debt Review your current debts are assessed and lowered through negotiations with your creditors, forming part of a new Debt Repayment Plan. How long does debt review last? The process can take anywhere from 3 to 5 years.
A trusted payment distribution agency (PDA) oversees all monthly payments from you to your creditors. You have no contact with your creditors and they cannot contact you. You are safe from any legal actions regarding your debts and cannot enter new credit agreements during Debt Review. Once you’ve repaid everything you owe through Debt Review, you receive a Debt Clearance Certificate and can start applying for credit.
Voluntary Surrender Summarised:
Ideal for consumers who are declared insolvent, Voluntary Surrender involves a legal court application declaring you bankrupt. During this process, you voluntarily surrender your estate, and a curator is appointed to manage the sale and distribution of your estate. The proceeds are distributed fairly between your creditors, and although you become debt-free rather quickly, you also lose your valued assets.
We consider Voluntary Surrender a more extreme and permanent method of debt rehabilitation. In most cases, Debt Review is the more suitable option. Of the two processes, Debt Review affects your credit report less harshly and is easier to be approved for. Our True North Debt team will do a simple check of your affordability and your credit report, to determine a course of action that makes the most sense.
The Best Solution for You
We will always advise you on the best route to follow, for your unique and exact financial struggles. Every situation is different and our goal is to see our clients come out on top, no matter what it takes. There is no reason why your debt should hold you back from a life of financial security and happiness. Let True North Debt assist you on your journey toward debt resolution. Apply for Debt Review online today!