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Debt Counselling South Africa - Let us help you to get out of DEBT.

"I need help getting out of debt." Is this you? Are you struggling to repay your debt? Have you fallen behind on your monthly creditor payments or are you currently on the verge of falling behind? These are signs that in all probability you're in financial trouble. The sooner you apply for debt review, the better. Once a credit provider starts with a lawsuit, there's a danger that the particular debt can't be incorporated in your debt restructuring plan. I bet now you're thinking about how to get out of debt fast? Hold on, let's talk about the "Under debt review" meaning first.   What is debt review? Ever wondered, what is debt counselling or what is debt administration? It is a solution offered by debt review specialists, targeted at consumers who are over-indebted and struggling to manage their finances. Registered debt counsellors can help show you how to get out of debt with no money and bad credit. If your priority is becoming debt free, contact one of the many debt counselling companies in South Africa. Debt review companies will be able to assist you and explain to you the debt counselling process and what debt counselling fees you can expect to pay.   What is a debt consolidation loan? Debt Consolidation Loans permit you to repay all your financial obligations in return for one payment per month to your bank or credit provider at a lower rate of interest. Debt consolidation loans for non-homeowners as well as consolidation loans with bad credit may face more of a challenge securing a loan, but some major banks and other lending agencies are willing to work with them. Make use of an online consolidation loans calculator to get an idea of what the payments will be if you decide to go under debt review and need a consolidation loan.   Is debt counselling a good idea? Should you be eligible for Debt Counselling from registered debt counsellors, these trained individuals can help you to deal with your debt. They will communicate with your creditors to reach an agreement that allows you to cover your household budget and distribute the remainder of your available funds to the creditors. Ok, so what are the debt review disadvantages?   Pros and Cons of Debt Review: Pros (Advantages of Debt Review)  
  1. When a consumer makes application for debt review, creditors can't claim any assets or take any further legal action pending a conclusion with a Debt Counsellor. If the consumer is in financial trouble, they continue under debt review until all debts are settled.
 
  1. There isn't a permanent record of being under debt review stored on any Credit Bureau Database, and therefore unlike administration or any other avenues, the procedure leaves no black mark upon your name.
 
  1. Repayment of the debt obligations is performed through a monthly payment (to some Payment Distribution Agency who handle the cash aspect).
 
  1. Your Debt Counsellor sets aside some earnings for the requirements (food, school charges, transport costs, etc.) and then distribute the remaining funds to pay for your financial obligations. You won't ever pay more than you can reasonably afford.
 
  1. An authorised Debt Counsellor is much more likely to obtain a positive response from creditors with regards to negotiating repayments than the consumer.
 
  1. While under debt rescue, you only make one payment per month to a Payment Distribution Agency (payment distribution agent definition: One company who consequently pays all of your creditors) That one secure payment can make your budget much simpler to handle and lower your banking charges.
 
  1. A professional Debt Counsellor can counsel you on methods to reduce your monthly costs and share advice on how to become debt free on a low income.
 
  1. Knowing that you are doing something beneficial for your financial situation, will offer you an immediate sense of relief as you are coping with the issue instead of ignoring it. It is reassuring to know that soon you will be out of debt and you won't have to worry about debt collectors phoning every day.
  Con's (Disadvantages of Debt Review)  
  1. While under debt review an individual can not acquire more credit. (which you wouldn't want to do anyway).
 
  1. Although this may seem like a negative factor, it's included in the procedure to safeguard consumers from getting into more financial trouble and also to protect creditors from being charged with "reckless lending".
  How long does debt review last? Debt review will continue until you have paid all your debt. Paying it all off depends on how much you owe and make available to pay. If you don’t have a house or car, you should be able to pay off your debt in five to seven years and 10 to 30 years if you do. What about cancelling debt review? You can withdraw from debt review at any time, but once you have ended the process, the credit providers can immediately take legal action against you for the outstanding amount owed to them. You also can expect to pay debt review cancellation fees.   How much are debt review fees in South Africa? It is advisable to use companies registered with NCR (or National Credit Regulator) The NCR regulates the South African credit industry under the National Credit Act.   NCR debt counselling fee guidelines:   - Application fee of R50 + VAT as per the National Credit Act, Schedule 2 (2). - Rejection fee of R300.00 (ex VAT) if your application for debt review is rejected. - Restructuring amount less or equal to the first payment of the debt repayment plan with a maximum of R6000 (ex VAT) - In case of a communal application, the fee may be increased to R6000 (ex VAT) - A monthly After-care fee of 5% (ex VAT) of the instalment of the debt repayment plan with a maximum of R400 (ex VAT) for 24 months. After that 3% (ex VAT) with a limit of R400 (ex VAT) for the remainder of the term. - Debt review Termination: Should the consumer prematurely withdraw from the Debt Review Process, a fee equal to 75% of the restructuring amount will be payable. - In the 2nd month, a legal fee of R750 is payable to the debt counsellor to acquire a consent order. - Any other additional costs due to further legal processes. Debt review companies will present their client with a proforma invoice issued by the attorneys involved.   Will debt review affect employment opportunities? When going under debt review in South Africa, some individuals have faced complications with regards to job opportunities. This might be because at the time the debt rescue process was introduced in South Africa, employers did not understand how it worked. However, today, signing up for debt review should not have a negative effect on your current job or any future employment prospects.   In most occupations, it is important to show that you can manage your finances effectively, especially if your occupation involves advising others on finance management and financial products. This can be ascribed to the fact that most employers will feel that if you can't manage your financial situation satisfactorily, you will not be able to assist other individuals with adequate advice.   Debt counselling is completely voluntary, and by taking the necessary action to sign up for the debt review process, you are taking a responsible step towards reimbursing your outstanding debts while showing your employer that you can handle your finances adequately.   What happens when debt review is completed? Before understanding what you're permitted to do on completion of the debt counselling process, you should know what happens during the procedure.   Whenever a client subscribes for debt counselling, the debt counsellor will make sure that credit agencies and lenders are notified the client has become under debt review. The loan bureaus will proceed by flagging the client's profile on their system as ‘under debt review’. This is done to guarantee the client is not able to obtain additional credit. The debt counselling process is carried out to rehabilitate client’s finances and dealing with additional credit is going to be harmful to their financial well-being.   However, when the client has compensated business debt, the debt counsellor will be sending a clearance certificate for their creditors, in addition to the National Credit Regulator (NCR). Consequently, credit agencies will delete the ‘under debt review’ flag on the client’s profile, thus now allow the customer to get credit. Therefore, if you have paid off all of the debt under debt review, you will be permitted to buy a home and vehicle again.   NCR debt counsellor search. A list of debt counsellors registered with NCR can be found on the NCR website: www.ncr.org.za.   So to answer your question: What is debt rescue? It provides you with a solution on how to get out of debt fast with no money by contacting a company on the list of debt counsellors in South Africa. Let them help you consolidate debt and teach you how to become debt free fast.                

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