We like to keep the debt review process simple
5 Step Process of Debt Review
1: Fill in your application form
If you haven’t filled your application (Form 16) you have no protection. To begin the debt review process, you will need: A list of your creditors, A copy of your ID, A recent pay slip, Recent creditor’s statements, Last three months bank statements, Proof of residence, Any legal documentation from creditors.
2: Your creditors are notified
You are now protected from legal action. Start paying the reduced, provisional payment with your next salary pay date. Your Debt Counsellor will look at your budget and calculate a reduced, provisional payment, with enough cash remaining for your living expenses. Your Debt Counsellor will then notify your creditors that you have opted for debt counselling and your creditor balances will be requested.
3: Debt repayment plan prepared
Continue with the debt review process, by paying your reduced, provisional payment every month. The initial Debt Repayment is a temporary plan, which is sent to your creditors. This avoids unnecessary problems and shows that you are committed to getting out of debt.
4: Negotiated with creditors
Continue with the repayment of your provisional payment, until your plan has been re-structured. Thereafter your Debt Counsellor will contact you to pay the re-structured amount. As part of the process of debt review, we will negotiate with your creditors on your behalf to ensure that a reasonable, affordable repayment plan is agreed to. Based on creditor negotiations, your Debt Counsellor may need to re-structure the plan.
5: Application for repayment plan to be made court order
Once the court order is issued, you are on your way to a less stressful financial future. An application is made for the Debt Repayment Plan to be made a court order. A specialist legal representative may represent the matter in court on your behalf. Then the debt review process will be completed.
experts in the debt review process
FAQs on the Process of Debt Review
When do I need debt review?
If you have a lot of debt and you cannot afford to pay your debt, you need to consider applying for debt review and follow the debt review process. Firstly, it is of utmost importance to have a good credit record that will enable you to make future purchases on credit, such as a home or a vehicle. Secondly, not paying your debt off is a criminal offence and you can get into a lot of trouble with the law by not keeping a clean credit record.
ezDebt has debt counsellors with intensive experience in debt mediation and the debt review process. Our counsellors offer a service that is skilled and professional but still add a personal touch to everything that they do. Debt counsellors are appointed through the South African National Credit Act and as such endorsed by the National Credit Act.
What does payment negotiation mean?
The process of debt review includes payment negotiation with your creditors. We are able to negotiate with creditors to offer clients reductions in outstanding amounts due. Obviously, not all creditors agree to these reductions depending on the particular severity of the debt. But most creditors agree to reduce overall debt amounts. This is greatly beneficial to you because it will enable you to pay off your debt in arrears much faster than what you would originally have been able to, if you didn’t begin the debt review process.
How much will my payments be reduced by?
Debt repayments are usually reduced by between 30% to 40% – but our debt counsellors have been able to negotiate reductions to as much as 60% in the past. These kinds of reductions are exactly what people need, and also deserve. The very existence of the National Credit Act was born out of the realisation by The South African Government that consumers were allowed to attain more debt than what they could possibly ever afford. This is why we are able to negotiate debt payment reductions during the debt review process.
Why EzDebt when implementing the process of debt review?
ezDebt’s process of debt review helps makes financial freedom very reachable by negotiating a structured debt repayment plan with your creditors. All this in 5 easy steps over 60 days. The biggest benefit will be an emotional one. Emotionally you will become relieved from all of the pressure of being overly in debt. The minute you are taken under debt review you will be in a ‘safer place’ financially.