What Is Debt Review in Port Elizabeth
Debt review is a formal process under the National Credit Act that helps over-indebted consumers in Port Elizabeth reduce their monthly debt payments and protect their assets while they repay what they owe.
Debt review, also called debt counselling, was introduced by the National Credit Act of 2005. It is run by debt counsellors registered with the National Credit Regulator (NCR). The aim is simple: if you cannot meet your monthly debt payments, a registered debt counsellor negotiates with your credit providers to lower those payments to an amount you can realistically afford.
The debt review process, step by step
1 Application and assessment
You apply with a registered debt counsellor. They assess your income, living expenses and total debt to work out whether you are over-indebted, meaning your monthly commitments are more than you can afford.
2 Notifying credit providers and the bureaus
If you are over-indebted, the counsellor notifies your credit providers and the credit bureaus that you have applied for debt review. From this point, your accounts under review are protected while the process runs.
3 A restructured payment plan
The counsellor draws up a proposal that reduces your monthly payments, often by extending the repayment term and negotiating interest. You pay one affordable amount each month instead of many separate instalments.
4 A court order or agreement
The restructured plan is made legally binding, usually through a court order granted by a magistrate. This protects both you and your credit providers under the agreed terms.
5 One monthly payment through a PDA
You pay a single monthly amount to a registered payment distribution agency (PDA), which then pays each of your credit providers on your behalf according to the plan.
6 Completion and clearance
Once your debts covered by the plan are paid up, you receive a clearance certificate and your credit profile is updated. Read more about how to exit debt review and get your clearance certificate.
Important protections. While you are under debt review and keeping to the plan, credit providers cannot take legal action to repossess your assets for the accounts under review. In return, you may not take on new credit while under review.
Is debt review right for you?
Debt review suits people who have a regular income but cannot keep up with their debt. If that sounds like your situation, read do I qualify for debt review in Port Elizabeth, or compare it with other options in debt review versus debt consolidation. To get started, connect with a registered debt counsellor in Port Elizabeth.
Speak to a registered debt counsellor in Port Elizabeth
Send an enquiry and we will connect you with an NCR registered debt counsellor. There is no cost to make an enquiry, and submitting one does not place you under debt review.