Debt Rehabilitation

Debt Rehabilitation

With South Africa’s financial climate’s woeful state and many middle-class consumers struggling to make it from one month to the next, it’s no wonder that debt rehabilitation is one of the nation’s most-used debt help systems. Credit Rehab’s dedicated and reliable legal and financial experts are well-versed in all matters of debt rehabilitation.

What Is Debt Rehabilitation?

Debt Rehabilitation is an approach that involves reducing your monthly instalments or paying off your debts in full with the ultimate objective being to attain debt-free status and gain control over your finances. Services include consolidation loans, debt review, debt mediation, and as a last resort, sequestration.

It involves creating a custom repayment plan and consolidating all debt. The consolidated debt is paid in monthly instalments. Usually, debt rehabilitation offers:

• Lowered interest rates and repayment.
• Consolidated debt.
• Extended repayment terms.

Once you’ve met your debt obligations, you can obtain a clearance certificate that you can submit to the credit bureaux.

What’s Sequestration?

Sequestration is the legal process where an application is submitted to the High Court, for the individual to be declared bankrupt. A consumer can undergo Debt Rehabilitation after sequestration; however, at least 4 years must pass before a consumer can apply to have their estate rehabilitated after sequestration.

After sequestration, consumers can file for debt rehabilitation. Once the court grants the order, your name should be cleared from the sequestration status, allowing you to continue living your life with a clear credit record.

What If I’m Currently Over-Indebted?

Those currently over-indebted can undergo debt review or file for voluntary sequestration. Both of these debt mediation processes can make a big difference in your quality of life, making it easier for you to get through a month while also helping you to become debt-free in a shorter space of time. Once you are debt-free, you can start to enjoy a life free of worries, while learning to live within your budget more comfortably.

How Does Debt Review Work?

One of our expert Credit Rehab debt counsellors will determine your current situation through an affordability assessment. We’ll negotiate lowered monthly instalments with your creditors on your behalf. You will be protected from legal action and asset repossession.

While it might seem almost impossible at times, there are various solutions available to consumers living with too much debt and unable to manage their finances.

Without help, it can be difficult to negotiate and dispute with your creditors. Debt mediation and debt review place the mediating in professional hands, offering the best possible outcome by negotiating lowered monthly repayments, reduced interest, legal protection, and consolidation.

Contact Credit Rehab to ascertain the best way forward. We would be delighted to be of assistance.