07 Mar How Do Payments Work with Debt Review?
If you’re struggling to pay off your debts, a debt review could be a viable solution to help you manage your finances better. This formal process involves working with a debt counsellor to create a manageable repayment plan based on your income, expenses, and debts. But how do payments work with debt review? Let’s find out!
How Does Debt Review Work?
Before you can understand how payments work with debt review, you must first understand how it works. Debt review is a formal process that involves working with a debt counsellor to create an affordable and manageable repayment plan. The counsellor will consider your income, expenses, and debts to create a plan that works for you.
Once the plan is created, it will be sent to your creditors for approval. If your creditors agree to the plan, they will stop all debt collection efforts, including phone calls, letters, and legal action.
So, How do Payments Work with Debt Review?
1. Making Monthly Payments
Once your repayment plan has been approved, you will make one affordable monthly payment to a Payment Distribution Agency (PDA). The PDA will distribute the funds to your creditors according to the negotiated repayment plan.
It is important to note that you will not be making payments directly to your creditors. Instead, you will make one payment to the PDA, which will then distribute the funds to your creditors.
2. Paying Fees
The PDA charges a small fee for its services, which is typically included in your monthly payment. The National Credit Regulator (NCR) regulates this fee, which is capped at 5% of your monthly payment.
It is important to ensure that the fees charged by the PDA are fair and transparent. Make sure you understand the costs you will be charged before you sign up for debt review.
How Debt Review Can Reduce Your Repayments
Now that you know how payments work with debt review, let’s explore how this process can help reduce your repayments. If you find yourself struggling to make ends meet and pay off debt, a debt review can be a viable solution to help you manage your finances better.
One of the most significant benefits of debt review is that it can reduce your monthly repayments by negotiating a new repayment plan with your creditors. This new plan is based on your current financial situation, and the amount you owe is restructured to make it more manageable for you to pay back over time. By reducing your monthly payments, you can free up some of your income to cover other essential expenses.
Get Debt Review Today!
In conclusion, debt review is an excellent solution for anyone struggling to manage their debts. With the help of a professional debt counsellor and a reputable payment distribution agency, you can create a manageable repayment plan and reduce your monthly payments.
Debtco Group is one of the best payment distribution agencies in South Africa, offering fair and transparent fees and excellent customer service. If you’re not happy with your current payment distribution agency or need to start the debt review process, contact us today and let us help you take control of your finances.
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