Life Under Debt Review in South Africa

If you’ve thought about debt review in South Africa, you’ve probably wondered what it’s like. After all, its a good 3 to 5 years of getting to be debt-free. The truth is, it’s whatever you make it. The debt review process can be a time for personal and financial growth and exploration. You’ll have access to your very own financial advisor who will teach you how to properly manage your finances, overcome overspending problems, and build your credit report. Furthermore, you’ll learn how to live off your own money instead of credit, which is extremely beneficial to both financial and mental health.

Let’s explore what life after your debt review application in South Africa entails: the good, the bad, and the ugly.

A Dedicated Financial Advisor

First and foremost, you’ll have financial advice formulated just for you and your circumstances. Confidential debt counselling will act as a financial advisor, explaining the ins and outs of budgeting and overcoming debt with a debt repayment plan. You’ll ascertain what made you overspend in the first place, helping you identify triggers and reason with yourself when tempted to overspend– a touch of cognitive behavioural therapy paired with years of financial expertise when you need help with debt.

What’s more, is that your debt counsellor will help you pay off your debts faster, whether that’s through the acquisition of a side hustle or living frugally. You’ll learn about the debt avalanche and snowball repayments and ways you can save money with things as simple as turning off the geyser to save on your electricity bill.

No Access to Credit

Alright, this might sound like a disadvantage, especially when you’ve gotten into the habit of living off credit. Actually, not being able to access credit is beneficial for your financial health. You won’t be able to dig yourself further into the debt hole. Plus, any finance taken out during the debt review application and duration of debt review won’t be protected by debt review or able to be renegotiated with creditors by your counsellor– it’s the law.

Moreover, lenders who grant you credit with a debt review on your credit report will be deemed as reckless lending, which is an offence. It’s extremely difficult, if not impossible, to get finance under debt review, unless you pawn something of high value, like a car, under debt review. It’s against the law for lenders to grant you a loan under debt review.

The key point is that this is for both your and your lenders’ protection. You won’t be protected by debt review if you take out more credit, and creditors won’t be able to pursue legal action if you default. It’s better for everyone this way.

Legal Protection

You’ll be able to sleep peacefully at night and have better mental health knowing that creditors can’t sue you for not being able to pay your debt. You also won’t be able to lose your assets. By law, creditors can’t pursue you under debt review. That is, unless you take out further credit, in which case debt review might be terminated. You’ll be liable for all your defaults and judgements once more.

If you’d like to learn more about the benefits of debt review and how it can turn your life around, be sure to contact DebtCo Group. We’re financial experts with years of experience protecting and helping the overindebted.