When you enter into Debt Review you’ve put up your hand to simply say the following “I’m struggling at the moment and I can’t afford to meet my full monthly debt obligations, this is what I have available in my personal budget every month. Please negotiate with my creditors” 

The good news is that the National Credit Act makes a provision for being over-indebted and via the Debt Review process affords South African consumers the opportunity to be able to reduce their monthly debt repayments in line with their affordability (money left over in your budget after all your living expenses).

It’s a legal and very legitimate route out of debt.

This affordability test is conducted via an income and expenses analysis completed right at the beginning of your Debt Review application and forms the base of the proposals that your Debt Counsellor finalizes with your creditors. 

As long as you meet your new monthly debt review repayments on time each month everything is in order.

his is the problem when you miss payments…

Your creditors are expecting their new repayments on time every month. That’s part of the deal, and when you start missing your new restructured debt review repayments that are well within their rights to terminate the new deals your Debt Counsellor has put in place. 

This is less than ideal.

It means that you remain under Debt Review but you don’t have the luxury of paying reduced repayments which was the whole reason why you entered into Debt Review, to begin with. 

We understand that things aren’t easy at the moment, but you need to make sure you make your Debt Review repayments on time each month to avoid falling behind.

Remember you can reach out to us via email or phone or WhatsApp.

The SA Debt Advisors Team