With the aid of the National Credit Act, individuals can now seek help if they find themselves in a debt position that is cumbersome.
By expounding your situation to a debt counsellor, they will embark on fixing a compromise with your creditors to pay off your debt in more feasible terms.
While under a debt review, a consumer may not incur any new debts and will be refused if they inquire . The aspiration of debt review is to resolve the existing debts of a consumer who can no longer cover their monthly expenditures following indebtments. Within 5 days of lodging an application, they are summarily shaded, and for this duration this no legal action may be taken against them in the time period that their paperwork is being prepared.
Debt review is not a way to run away from debt, it is a safe way to face debt head on. Debt counsellors are there to assist consumers who may have been able to manage payments in the past, but are finding it difficult to keep up with current inflation rates and declining salaries in comparison.
An application will be escalated to the courts if a creditor decides not agree to a proposal. If this happens, a judge will decide on the matter, and compel them to comply, provided the proposed negotiation is fair and acceptable.
Debt review may be a time consuming process and it can take years to pay off the debt. However, it is the best remedy for over-indebted consumers who need to free up money to live on, while still adhering to the commitment they made to their creditors when incurring debt
Article written by: Andrea van Tonder 03-2013