Are you feeling overwhelmed by mounting debts? Struggling to make ends meet each month? It's time to take control of your financial future with debt review—a powerful solution designed to help you regain financial stability and peace of mind.
What is debt review?
Debt review is a legal process that assists over-indebted South Africans in managing and eventually getting out of debt. A qualified debt counsellor assesses your financial situation and negotiates with creditors to restructure your debt repayments, making them more affordable. This process ensures that you can meet your monthly obligations without sacrificing essential living expenses.
Did you know: with Meerkat, you can save up to 50% on your monthly debt repayments!
♦♦ Read more about the debt review process here
How Does the Debt Review Process Work?
Step 1: Assessment
Once you've filled in the contact form, a debt counsellor conducts a thorough assessment of your financial situation, including your income, expenses, and debts. This helps determine whether you qualify for debt review and allows the counsellor to develop a tailored repayment plan for you.
Step 2: Notification to Creditors
Once you decide to proceed, your counsellor notifies all your creditors and the credit bureaus that you are under debt review. This immediately halts any legal actions and debt collection efforts against you.
Step 3: Proposal Development
Your debt counsellor negotiates with your creditors to reduce interest rates and restructure your repayment terms. This can end up saving you up to 50% on your monthly debt instalment!
A proposal is drafted outlining the new repayment plan, which aims to make your monthly payments more affordable while ensuring all creditors are paid.
Step 4: Court Approval
The repayment plan is submitted to a magistrate's court for approval. Once the court grants a consent order, the new terms become legally binding for all parties involved. This also means your assets like your home and your car are protected!
Step 5: Monthly Payments
You start making the agreed-upon monthly payment (ONE payment for all your debt) to a Payment Distribution Agency (PDA), which then distributes the funds to your creditors according to the court-approved plan.
Moku Tip: A debt counsellor should NEVER personally handle your funds. This should always be done by a PDA.
Step 6: Progress Monitoring
Your debt counsellor regularly reviews your progress and adjusts the repayment plan if necessary. This ensures that you stay on track and can make any necessary adjustments in response to changes in your financial situation.
Step 7: clearance certificate is issued
Your debt review clearance certificate is issued and the debt review flag warning is removed from your credit report! You are now free to start applying for credit again!
FAQs about the debt review process
1. Is debt review a good idea?
The is why debt review is a good idea:
- Protection from Legal Action and Harassment
- Consolidated and Reduced Monthly Payments
- A Clear Path to Financial Freedom
- No Additional Debt
2. How long does the debt review process take?
There isn't a set time that the debt review process takes as this is dependent on how much debt you have and how much you are able to pay towards it each month. Usually people take about 5 years to complete the process.
3. What happens under debt review?
When you are under debt review, all your debt is consolidated (made into a single payment) and a debt counsellor works out a more manageable repayment plan for you. They are able to do this by negotiating with your creditors on your behalf to reduce your interest rates on your loans.
4. How do I qualify for debt review?
To qualify for debt review, you must be struggling to make your monthly debt repayments or considered over-indebted. This is why the debt counsellor initially conducts a financial assessment to determine if you are over-indebted. A quick way to check if you are over-indebted is to see if more than 50% of your salary goes towards paying off your debt.
4. Can debt review be declined?
Debt review can be declined if you aren't over-indebted or if you are currently not employed.
Watch this video with Founder & CEO of Meerkat, David O'Brien as he unpacks the debt review process:
Success Stories
Debt review has transformed the lives of many South Africans.
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John and Mary’s Story John and Mary were drowning in debt with multiple credit cards, personal loans, and a car loan. Their monthly payments were unmanageable, and they were constantly harassed by creditors. After entering debt review, their counsellor negotiated reduced interest rates and consolidated their debts into a single, affordable monthly payment. Within three years, they were debt-free and had learned valuable budgeting skills.
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Thabo’s Journey Thabo, a single father, found himself struggling with high-interest payday loans. The stress of managing his finances was affecting his health and family life. Through debt review, Thabo’s counsellor managed to negotiate better terms with his creditors, significantly lowering his monthly repayments. Today, Thabo is debt-free and has built a small emergency savings fund.
Take the First Step Towards Financial Freedom
Don't let debt control your life. Take action today and start your journey to financial freedom with Meerkat's debt review services. It's time to reclaim your peace of mind and secure a brighter financial future.
Ready to get started? Contact us now and let Meerkat help you conquer your debt. Fill out our quick and easy form, and one of our expert consultants will get in touch with you to discuss your options.
