South Africa
Debt Review in South Africa: What It Means, How It Works and What It Costs You
It cuts payments and protects you from creditors. It also locks your credit file for years.
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- Effect on payments
- Reduced to what you can afford
- Duration
- Usually 3-5 years
- Cost
- Counsellor fees, deducted from payments
- Credit effect
- Flagged for years after clearance
It is a formal legal process
A registered debt counsellor declares you over-indebted and restructures payments through a court-ordered plan. Creditors must stop pursuing you once it is in place.
It is not free
Counsellor fees and a restructuring charge are deducted before creditors are paid, so the plan runs longer than the debt alone would.
The credit flag outlasts the plan
The debt review status stays on your file after the plan ends, and until a clearance certificate is issued you cannot easily borrow.
Consider it against consolidation
If you can qualify for a consolidation loan at a rate below your current debt, that is faster and leaves the file cleaner.
FAQ
Can I borrow during debt review?▾
Only with the counsellor consent, and rarely.
How long does it last?▾
Typically three to five years.
Can I exit early?▾
Yes, by settling and obtaining a clearance certificate.
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