HOW LONG WILL I STAY ON DEBT REVIEW?

HOW LONG WILL I STAY ON DEBT REVIEW?

This is one of the top questions I get asked daily during consultations: “How long will I stay on debt review?” It’s the most frequently asked question, and the best answer I can give is that it depends on two factors.

The two factors are the total outstanding debt and the monthly contribution amount you’ll be paying towards your debt. To put it into perspective, if you owe R10,000 and pay R1,000 per month, it will take 10 months to complete the debt review. If you pay R2,000 per month, it will take 5 months.

As you can see, the higher the monthly contribution, the quicker you pay off your debt and exit debt review. The more committed you are to keeping up with your payments and paying extra when you can, the sooner you’ll be debt-free.

Once you’ve signed up for debt review and agreed on the monthly contribution, we prepare a court application to obtain a court order for the credit providers. This makes the debt restructuring binding.

Debt review is flexible. If you win the lottery or come into some money, we can pay off all your accounts under debt review and issue a clearance certificate. Credit providers and credit bureaus will be notified, and within 21 business days, your profile will no longer be flagged as under debt review.

Debt review can also buy you time if you’re struggling to service your debt due to reduced income, like a spouse losing their job or a drop in business income.

Credit providers generally want clients to adhere to a repayment period of 60 months (5 years). This means the proposed monthly payment should pay off the debt within 5 years, excluding the home loan. Once all other debts are paid off, we must issue a clearance certificate for the home loan by law.

So, it generally takes a maximum of 5 years to complete debt review, depending on what credit providers deem acceptable and what you can afford to pay monthly. Typically, within 3-5 years, you should be debt-free and issued with a clearance certificate.

Do You Need Debt Review?

If you’re really stretched and struggling to service your debt every month, it can be hard to know where to turn. We’re here to help you find the best solution. We’ll guide you through the entire debt review process and help you deal with your debts to become debt-free. Complete the free callback form to the right, and we’ll get in touch right away.

HOW LONG WILL I STAY ON DEBT REVIEW?

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