Sponsored Content
BUSINESS NEWS - In today's world, avoiding debt is next to impossible. Getting into the middle class, starting a business, or purchasing a home will all require taking on some form of debt. We all hope to live comfortably, but life isn't always smooth sailing.
Even if you're very careful with your money, you could still rack up an insurmountable amount of debt that's difficult to pay off.
A common option in this case is to apply for debt review.
This article will explore just some advantages that can be gained by undergoing debt review.
- You will have a clear map towards debt repayment
The debt review process includes setting up a debt repayment plan that suits your needs, both in terms of income and debt. Payments will be broken down into manageable monthly chunks. Though it may take time and effort, you can guarantee that you will succeed in being debt-free.
2. Your assets will be safe
The completion of credit counselling is a prerequisite for debt review. At this stage, creditor protection will be granted if a debt counsellor determines that you are severely over-indebted. The client is in deep financial problems if the credit counsellor finds that he or she is over-indebted because he or she cannot afford to make the monthly payments after making the appropriate budgetary cuts.
However, you will be protected from legal action as long as you make your new monthly payments as per the conditions of your revised debt repayment plan. A debt review can be terminated and legal action launched against you if payments are missed.
3. Your creditors will no longer be able to harass you
Once debt review has been initiated, your debt counsellor will handle all future interactions with your creditors on your behalf. Creditors and credit bureaus are barred from contacting you personally.
Creditors can get what they want from you in many different ways, including by freezing your account, demanding the return of items in the case of an instalment sale, petitioning the court for a warrant of execution to attach goods, and harassing you with repeated phone calls and letters. During the period in which your debt is being examined, you will no longer receive legal papers or communication from creditors. The NCA safeguards your rights and possessions under the law.
4. Your repayments will be made manageable
Having many debts to repay increases the risk of missing a payment, which is a disastrous scenario.
There may be a lot of credit cards and loans to keep track of, and they may have all come from various banks. One payment to your credit counsellor is all that is required during debt review.
5. Your monthly repayments will be made more affordable
The fundamental objective of debt review is to establish a workable plan for settling debts. When monthly bills and debt obligations become too much to handle, creditors will typically begin seizing individual people's assets. Depending on the specifics of your financial situation, re-evaluating your obligations during the debt review process could reduce your monthly payments to a more reasonable level.
Related news: More of SA turn to debt counselling as ability to borrow diminishes
'We bring you the latest Garden Route, Hessequa, Karoo news'
