“Change the way you see things and the things you see will change.”
~ Wayne Dyer
Any process that involves a change of lifestyle can make you feel hesitant or nervous. Debt review is one of those processes that you only feel comfortable with once you have gone through it. In this article we are going to look at debt review a little closer and give you tips on what to do and what not to do while under the wing of a Debt Rescue counsellor.
Debt review is a legal process specially designed to assist consumers who need assistance in restructuring their debt repayments. It is a safety net which allows the consumer to only pay an amount which they can afford and have money left over for their living expenses.
Debt review is not a way to make your debt go away. It is a streamlined process which buys you time to live your life without drowning in your debt. Many people find themselves embarrassed to be under debt review and this should not be the case. Debt review is, like choosing a university, or a certain career path, simply another path on life’s journey.
The path of debt review is one which allows you to sleep better at night and still look after your family and livelihood. Below are some important pointers for those of you who are under debt review already or who are planning to speak to a Debt Rescue counsellor.
Good Habits while under Debt Review
Start getting into the habit of budgeting. It is vital for your financial health. When you feel ill, you acquire medicine to make you feel better. When you need to increase your financial health, you start budgeting. Setting up a budget is easy, it’s sticking to it that is the difficult part. It helps a lot to have a goal in mind, and keep focusing on that endpoint, that top of the mountain. Only focus on that and let nothing take your dream from you.
Pay the consolidated fee – which is your once a month, reduced payment – on time and in full. Make sure that you place this in your budget layout and make provisions to look after your safety net. Without the process the creditors will be able to hound you and send summons and many people stand to lose a lot. It is wiser to look after the process by paying on time and in full.
Make sure that you speak about your situation. Whether this be in email format or through other channels. Make sure that you are communicating if something looks as though it will not be working out in the near future, or you have a temporary hiccup. It is better to communicate than to disappear because you are afraid. There is always a solution to every problem.
Let us say that you get a raise in your salary, and you now have R2000 extra per month. Perhaps it can be an added passive income. Any added amount per month which is fixed will assist you. Look at your budget and place the money where it needs to be, take the extra and communicate with your debt counsellor to increase your monthly amount. This way, you will be able to pay off your debt sooner. Every little bit helps you.
Habits to Avoid while under Debt Review
There is a large amount of false information about what happens to you while under debt review:
- Blacklisted: You are completely protected from your creditors during the debt review process. This means that you cannot be blacklisted, as long as you remain under debt review.
- Credit Record:
While under debt review, your credit score will show that you are under the process of debt review. Therefore, you will not be able to make credit. However, once you are finished the debt review process this flag is removed without a trace. No one will ever know that you were under debt review.
While under debt review, you will be unable to make further loans from accredited credit providers. If you choose to go to an unaccredited credit provider, understand the danger involved and know that no debt counsellor can help you or protect you. It is unwise to look for further credit while under the process of debt review. The process itself is meant to guard you and assist you to get back on your feet and have a fresh start.
Debt is not something to be ashamed of. In South Africa, debt affects more than half of the population. This means that the people who you work with, those that you walk past in the street, your friends and family, all have some sort of debt. With the current South African financial forecast, many of these people will need debt review to be able to keep afloat. Debt Rescue keeps everything 100% private and confidential, so, you would only know if someone was under debt review if they told you.
We hope that this information assisted you in navigating your journey through debt review. If you have any questions or concerns, make sure to communicate through any of our channels on social media or contact us directly.
We can make your life easier, Call us.