Debt Review is a legal process
The term “debt review” appears to strike fear in the heart of the average consumer. However, in most cases, this fear is often based more on a negative stereotype than a genuine understanding of the debt review process. For most South African consumers struggling with unmanageable debt, undergoing debt review is an incredibly efficient process resulting in financial security.
In a nutshell: debt review is a legal process that allows a professional debt counsellor to liaise and make payment arrangements with your creditors on your behalf. This means that all communications from your creditors will go straight to your debt counsellor, effectively putting an end to any form of harassment or undesirable calls from them.
At Debtco Group, we specialise in the debt review legal process, providing our clients with honest and expert advice regarding their current financial situation. Our team of NCR-registered Debt Counsellors will guide you through the debt review process from beginning to end, finding the most practical approach to solving your debt problems as soon as possible.
When you choose to go under debt review, you cannot apply for new credit until the process is complete. This is merely a precaution to ensure that you don’t create new debt until you can afford it. Your debt counsellor will also inform your creditors of your current status, ensuring protection from legal action against you.
Once the nitty-gritty details of the review have been finalised, the magistrate will need to approve your court order, which will be forwarded to your creditors. This average turnaround is between 60 – 90 days. The first two instalments will be paid to Debtco Group, after which the Payment Distribution Agency will distribute your money to creditors from the third payment onwards.
Although Debtco Group strives to get consumers out of debt as fast as possible, you will need to exercise discipline when paying back your newly negotiated monthly instalments. If you would like a more in-depth explanation of the debt review legal process, please contact for a free debt counselling assessment.