Struggling with debt? This is where credit review makes sense

If you’re struggling with the cost of living, you’re definitely not alone. About 10 million South Africans are over-indebted, meaning they cannot pay off their debt with their current income, according to the FinMark Trust. This puts a lot of pressure on households who have to call creditors and debt collectors while trying to meet their obligations.

This is why credit review can provide a way out. This is a program regulated under the National Credit Act, which involves working with a credit counselor to restructure your credit to lower your monthly payments while paying off the money you owe. You get immediate relief from your monthly budget so you can pay for essentials. Once you’re under credit review, you also get legal protection from having your property seized while you pay off the debt.

Is credit review a good idea?

A credit review may be a good idea if you are struggling to pay off your mortgage and need help rescheduling your monthly payments. You will need to be working full-time and a South African citizen.

Remember that while you are under credit review, you cannot take out a new loan, for example, to buy a house or a car, and you will not have a credit card. The credit review process will be recorded in your credit bureau profile. It also extends your total repayment period as your monthly payments will be reduced.

When should you go under credit review?

You should apply for credit review if you cannot meet your monthly installments from your current income. If you’re feeling overwhelmed by your current debt and struggling to keep up with your payments, credit review may be an option for you. You should be able to commit to a new payment plan and manage your spending until your debt is paid off in full. This usually takes between 36 and 60 months, depending on how much you owe.

You should not go under credit review if you are planning to take more loans. The goal is to get out of the situation you are in, not to make your situation worse.

Who is eligible for credit review?

You must be a South African citizen, be employed full-time, and be between the ages of 18 and 65. You must have a South African ID and be able to show proof of income and expenses.

Unfortunately, credit review is not available to self-employed people, retirees, or foreigners.

What are the benefits of credit review?

While you are under credit review, you get legal protection from creditors. For many people, the biggest benefit is relieving the anxiety and stress they feel about their finances. Instead of running away from creditors’ calls, you can focus on doing your job and providing for your family.

Another advantage is that there is someone by your side throughout the process, and you don’t have to feel alone. You will work with a counselor to get guidance and support in paying off your debt. Debt Rescue advisers are registered with the National Credit Regulator (NCR), so you know you’re getting expert advice on your situation.

What is the credit review process?

Credit review is a step-by-step process.

1. We start with free credit check to see if credit review is the right solution for you.
2. We then create a custom credit review program so that your payments are affordable and sustainable. We also notify credit providers and credit bureaus that you are subject to a credit review. This protects you from abuse and legal action during the process. We negotiate low interest rates and extended repayments.
3. The program be submitted to the Magistrate’s Court to be approved, which then makes it a legal obligation, giving you the full protection of the law.
4. He did a monthly payment during the process.
5. When you pay off all your debts, you get a certificate of registration which allows you to take a new loan. You can then opt out of credit review.

Are you hoping that credit review can help you? Apply here for a no-obligation quote from Debt Rescue.