Living above your means?
- Broke before you even get paid?
- Wanting to consolidate all your debt repayments into one?
- Concerned about losing your house / car?
- Need a second chance?
Pros and Cons of going under debt review
Pro’s
1. We will restructure your debt repayments to an affordable amount. Our NCR accredited debt counsellors will make certain that there is sufficient cash for your necessities (food, clothing, transport costs etc) and then the remaining money will be used to pay your debt. Your debt repayment amount will never be more money than you can reasonably afford.
2. Because you are serious about changing your financial situation, credit providers are more likely to negotiate a lesser amount (even over an extended period) with a Debt Check (registered debt counselling practise), because they know that they will get their money on a monthly basis.
3. By going under debt review, your creditors cannot start any legal actions for 60 days. During this time you are expected to continue paying the creditors’ what you can reasonably afford, while our debt counsellor is arranging the new debt repayment plan.
4. Once under debt review, you only make one monthly payment (to a Payment Distribution Agency) that in turn pays all your creditors. One easy payment will make your finances much more manageable.
5. If you go the debt-counselling route – rather than apply for sequestration – you are far more likely to get credit later on in life. With Debt Check, once your debts have been repaid or we assess that you can afford your existing debt, we will issue you with a clearance certificate and your credit record gets cleared immediately. You are free to get more credit if you want. With sequestration it will take almost 9 years to get your name cleared.
Cons
1. You will need to pay R 100 as an application fee. According to NCR guidelines, the counsellor will be paid a fee equal to the first instalment of your new debt repayment plan (up to R6 000) and thereafter a monthly management fee of 5% (up to R400) of your monthly repayment.
2. While under debt review you are not allowed to obtain any additional credit or incur any further credit on your existing accounts. Failure to do so will result in the termination of your debt review by your credit providers.
3. You will need to cut down on your living costs and start living on a budget. For example, reducing your food bill by buying in bulk or at the cheaper stores, shopping around for cheaper insurance and trying to reduce your transport costs.
Debt Check will work with you in finding the best solution to manage your finances. Contact us today by visiting us today (www.debtcheck.co.za or mail: info@debtcheck.co.za) for a FREE call back from one of our qualified debt consultants and start taking control of your finances today.
