The stronghold of debt can be devastating to any South African consumer. But, for those that have already been proactive to get themselves out of their debt burdens, they are indeed a step ahead of their peers through the Debt Review/Counselling process. Considering the COVID-19 lockdown reality that they currently face together with the rest of the country.
Debt Review, although a regulated measure that falls under the National Credit Act and regulating body, the National Credit Regulator, has definitely been and still is misunderstood by many.
The Debt Review programme has been designed in such a way to help over-indebted consumers fix their debt problems. Is it easy? Of course not. But, for those that have massive debt amounts piling up, receive a form of income, and want to get their credit scores in the green again in future, it is truly worth it. The programme especially comes in handy during a time like this – a crunch crisis period. As well as when dealing with the aftereffects of this situation.
Here is a list of things (to mention but a few) that can explain why consumers under Debt Review are in better positions during an economic hardship compared to others that are not:
- Their assets, like a car and house, are already protected by the National Credit Act and a court order.
- They are already paying a lowered installment amount on their various debt obligations.
- Their budgets have been restructured in such a way that these consumers are able to cover their essential living costs – focussing their finances on what is needed, not extra costly extravagances – an important habit to develop during difficult times.
- They are committed and already actively involved in the process of fixing their debt problems.
- An important endurance that is needed in tough times is to not be tempted into taking out more credit, which equals more debt. In Debt Review it is not allowed to acquire more credit. This protects the Debt Review client from piling on more debt, and not to “borrow from Peter to pay Paul” during this testing time.
- Through instructed communication channels, these consumers know they can communicate with their Debt Counsellors if they have any queries or concerns – even during difficult and crisis times like the COVID-19 lockdown period.
- Various Debt Review companies, like DebtSafe for example, offer Credit Life Insurance to their clients (that requires/want it) to protect/keep up with their Debt Review responsibilities in case of retrenchment or a loss of income.
The perks of being under Debt Review, even while facing difficult circumstances, are much more than what consumers think or the programme has received recognition for. DebtSafe, as a registered Debt Counselling/Review company, is proud to be part of the National Credit Regulator’s recommended programme as it is a viable solution for many to FIX DEBT. Consumers are encouraged to be hands-on with their financial problems and to get the necessary help that they deserve, particularly during tough and uncertain times.