Disadvantages of Debt Review - So why do people choose to go under debt review despite these disadvantages?
Debt review, otherwise known as debt counselling, is a debt solution targeted at South African consumers who are over indebted and struggling to manage their finances. The National Credit Act (NCA) introduced the formal debt rehabilitation program, Debt Review Process , in order to prevent consumers from being placed into personal administration and having to deal with the long term effects. The process was also implemented in order to make sure that debt counsellors follow strict and ethical guidelines when assisting clients with gaining their financial well-being. Debt review is the process whereby a debt counsellor assesses a client’s outstanding debt and implements a restructured debt repayment plan. This will be done through the process of renegotiating interest rates with credit providers in order to reduce them, as well as by extending the debt repayment terms.