Debt review, also known asdebt counselling, is a debt solution targeted at South African consumers who are struggling to manage their finances and find themselves therefore to be over-indebted.
It was introduced by The National Credit Act (NCA) as a formal debt rehabilitation program in order to prevent consumers from being placed into personal administration and having to deal with the negative long-term effects thereof.
Once a consumer has been found to be over indebted, this status of being over indebted is recorded at the credit bureau, affecting the consumer’s credit rating negatively.
A consumer will not be permitted to obtain new credit for as long as his/her status is still reflecting as being over indebted.
In many instances, consumers who have applied for debt review and who was found to be over indebted by a debt counselor, does not continue with the formal application before a Court, leaving them in limbo with an affected credit status resulting in a consumer being in the exact same position as if he/she has been placed under debt review by a Court Order, without the intended results of the debts being restructured.
A consumer in such a position will not be able to provide for fresh credit. This will result in a restraint on personal freedom such as being prohibited from buying a new vehicle or applying for a clothing account.
Should you find yourself in this position, call us. At DPB Attorneys / Conveyancers, we are equipped to help you. Get your freedom back. Contact us today!