25/10/2018
Debt Review
What is debt review?
Debt review and debt counseling are one and the same thing
With debt review, the debt counselor assesses the state of over indebtedness, and then notifies all the creditors and negotiates new terms with the various credit providers. All of the debt will be consolidated into 1 simple and affordable payment.
In many cases, debtors may find that their interest rates have also reduced due to their debt review.
Situations can arise where some credit providers disagree to the proposed terms of the new debt agreement. In these cases, the debt counselor can apply to the Magistrate Court for a ruling on the proposed terms of the debt re-arrangement.
The debtor will have to make their monthly payments according to the terms in the debt re-arrangement until they have settled their balance, or until he or she is able to continue with payments at the initial contracted rates.
Once the agreed obligations in terms of the debt review have been met, the debt counselor will issue a clearance certificate. The clearance certificate indicates that the debtor has been rehabilitated.
