How Debt Review Works
With the goal being to clear you of debt, the steps of how debt review works are in place to guide you, protect you and simplify your finances. As long as you have a fixed monthly income and qualify for Debt Review, this debt relief process will allow you to regain financial stability, end your debt problems, and assist with financial planning.
Why Debt Review?
Debt Review has been a lifeline for thousands of South Africans suffering from over-indebtedness and is so successful because it considers the unique circumstances of what makes you eligible for debt review.
To begin the Debt Review process with us, you will be sent a formal application (form 16), where you will outline your finances and personal information in detail – this includes your monthly income, living expenses, accounts, loan agreements, and your monthly debt repayment plan. This insight into your finances helps us to restructure your debts in such a way that you can afford to repay what you owe.
Over-Indebtness Assessment
Next, we issue your creditors with a notice that lets them know you have applied for Debt Review and also requests a Certificate of Balance (COB). These COBs allow us to be 100% certain of your over-indebtedness and we will then issue your creditors with a Confirmation of Over-Indebtedness (form 17.2).
Our True North Debt NCR-approved debt counsellor will then negotiate with your creditors to reach terms on lowering your monthly instalments and interest rates so that we can restructure a new, more affordable monthly payment plan where you pay just one fee that encompasses everything that you owe. This reduced monthly payment is managed by a Payment Distribution Agency.
What’s the Debt Help System?
It is important to know that once you’ve applied for Debt Review, you will be listed on the NCR’s Debt Help System – this means that you cannot apply for credit or loans while you are under Debt Review. This is a good thing because you will be focused on overcoming your current debt.
Our Debt Review service is approved by the National Credit Regulator (NCR), following all the regulations and rights under debt review of the National Credit Act (NCA) of South Africa. Debt review usually lasts for three to five years, after which you are granted a Debt Clearance Certificate.
Is Debt Review Worth It?
One of the major benefits of Debt Review is that you will no longer be dealing with your creditors, as our team will take over any communications with them.
Since there are so many instances of reckless lending where debt is concerned, we also make a point of assessing your credit agreements for any signs that you were granted credit unfairly (where it was clearly not within your financial best interest) – this would be at the fault of that specific creditor. Your main focus is to repay what you owe based on the new repayment plan we have put in place for you – we’ll be there every step of the way, to assist you in your Debt Review journey.
To learn more, contact True North Debt today. We would be delighted to help you take your first steps to financial freedom.
