25 Mar What Makes You Eligible for Debt Review?

Debt can feel like a black hole that engulfs all your money and sanity, right? It messes with your head, your heart, and your relationships. Luckily, there is a way out: Debt Review. It’s a legal process that debt counsellors perform to consolidate your debt into one manageable ball of monthly payments that are distributed to your respective creditors. So, what makes you eligible, and how do you know if you should undergo the process? Read on to discover the eligibility criteria for Debt Review and how True North Debt does all the hard work for you. Let’s get you in control of your finances once more!

Over-Indebtedness: The Core of Eligibility

The central requirement for debt review is being over-indebted. This means you cannot afford to meet your minimum monthly debt repayments while still covering essential living expenses. Here are some signs you might be over-indebted:

Struggling to make minimum payments: If you’re constantly juggling and rearranging your finances to meet your credit card and loan minimum payments, it might be time for Debt Review.

Reliance on credit to make ends meet: Do you use credit cards or loans to cover everyday expenses like groceries or rent? This is a major red flag and indicates that you should undergo an intervention.

Receiving collection calls and letters: Are creditors hounding you for overdue payments? This illustrates a serious problem.

Beyond Over-Indebtedness: Additional Criteria

While over-indebtedness is crucial, other factors come into play:

Minimum Requirements

– You must be over 18 years old.
– You must have a regular income (employment, pension, etc.).
– Your income should be paid into a bank account.
– You must be a South African citizen or resident with debt in South Africa.

Marital Status

If you’re married in a community of property, your spouse must also be included in the debt review process.

You cannot be under sequestration (a legal process for insolvent estates) or debt administration.

Debt Counsellors: Your Eligibility Assessment Partners

While this blog post provides a general overview, the best way to determine your eligibility is to consult a registered debt counsellor. They will:

– Review your financial situation: They’ll analyze your income, expenses, and debt to assess your over-indebtedness.
– Explain the process: They’ll walk you through the steps of debt review and answer any questions you have.
– Check your eligibility: They’ll ensure you meet all the successful debt review enrollment criteria.

Is Debt Review Right for You?

If you’re struggling with debt, debt review can be a powerful tool for regaining control of your finances. However, it’s not a one-size-fits-all solution. Consider these factors before making a decision:

Commitment: Debt review requires a commitment to the process and sticking to the payment plan.
Credit Score Impact: Debt review can negatively affect your credit score in the short term.
Long-Term Benefits: Despite the initial credit score dip, long-term debt management can eventually improve your credit health.

Taking the First Step Towards Financial Freedom

If you suspect you might be eligible for debt review, don’t hesitate to reach out to our registered debt counsellor. Remember, you’re not alone in this battle.

With the right guidance and a commitment to change, you can break free from the chains of debt and achieve financial freedom. Contact us now for help with Debt Review and eligibility assessment.