Under Debt Review Loans In South Africa

What Is Debt Review Loans?

It is a legal debt-relief process. If you are over indebted and battling to meet your debt obligations, you can apply to undergo debt review.

A qualified debt counsellor will help you assess your financial situation and draw up an affordable repayment plan that allows you to also meet your living costs.

Under Debt Review Loans In South Africa?

How to Get a Loan Under Debt Review

The short answer here is that you cannot get a loan while under debt review, for the simple reason that while under debt review your credit profile will be flagged across all credit bureaus, and this will prevent responsible lenders to approve your loan application, once they know that you are currently over-indebted and in debt review because you are struggling to repay your debts already. Whenever one applies for a loan, it’s mandatory for reputable creditors to check your credit history before proceeding with your application. If they work alongside the NCA and NCR, they will reject your application immediately upon seeing your credit status. 

As stated by the National Credit Act (NCA), should a bank or creditor approve a loan application from a debt review candidate, they are guilty of reckless lending. The NCA states no one under debt review is eligible for further loans until they have completed the debt review process and are no longer over-indebted.

Debt Review loans Benefits For You:

One reduced affordable monthly instalment for all your debt

Reduced instalments with all creditors

Reduced interest rates with all creditors (where negotiated)

We deal with your creditors directly, so you don’t have to

Creditors may no longer harass you for payment

There is a structured repayment plan with an exit date as a goal

You will have enough money to pay your living expenses

Your assets will be protected against legal action

You end the process debt free and eligible for credit again

There are reduced credit life insurance premiums

If this sounds good to you, then you will be pleased with the ease of the process to achieve this!

How does debt review loan work?

Step 1: Lets look at your financial situation and work out your debt profile.  Step 2: Getting all the paperwork together for a formal review 

Step 3: We call for Confirmation from your creditors & work out a repayment schedule with you. 

Step 4: We list you on the National Credit Bureau’s NCR Debt Help database 

Step 5: NCR notifies credit bureaus that you have applied for debt review. 

Step 6: We negotiate with all creditors to confirm a repayment plan 

Step 7: Creditors confer for agreement and a consent order is issued  Step 8: You start paying your debt with peace of mind.

How long does debt Review loans stay on your name in South Africa?

On the question of how to remove debt review status, you need a clearance certificate from your counsellor and present it to the credit bureau.

You might be asking ‘how long does debt review stay on your name? ‘. This usually takes five years as your borrowing history will indicate your default and payment history.

What is the disadvantage of debt review loans ?

After your initial assessment with a debt counselling company, you may be informed that your current situation does not qualify you to go under debt review.

Some of your accounts, especially those which have been subjected to legal action, may be excluded. Your debt may take longer to repay.