Feeling Stuck in Debt Review? Here’s How to Regain Control (and Maybe Even Exit!)

Let’s face it, debt review can feel like a marathon, not a sprint. If you’re one of the many South Africans who started the process but are feeling demotivated, you’re not alone. This post is for you! We’ll address common frustrations and explore ways to get back on track, including the option to transfer to a new debt counsellor (that’s us, wink wink!).

exit debt review South Africa

Is the Debt Review Taking Too Long?

Debt review isn’t a magic bullet. The process can take36 to 72 months on average, depending on your initial debt amount and repayment plan. Remember, you’re paying less than before, which takes time.

 

Feeling Unhappy with Your Debt Counsellor?

A good debt counsellor is your partner in financial freedom. Open communication is key. If you feel unheard or your questions go unanswered, you have the right to transfer to a new debt counsellor

Balances Seem Higher Than When You Started?

There are a few reasons why this could happen:

  • Unforeseen Interest:Sometimes, interest continues to accrue before your new repayment plan is fully implemented.
  • Lack of Valid Court Order:A valid court order is crucial for legally restructuring your debts and negotiating new terms. Without it, your original agreements with creditors may still apply.
  • Improper Account Restructuring:If your accounts haven’t been restructured according to the court order (e.g., incorrect interest rate adjustments), your balances may not reflect the agreed-upon changes.
  • Hidden Fees and Insurance:Service fees and credit insurance, if not initially factored into your calculations, can contribute to higher balances.

This highlights the importance of:

  • Working with a Reputable Debt Counsellor:A good debt counsellor will proactively explain potential fluctuations and ensure the court order process is handled correctly.
  • Regular Reviews:Review your balances at least twice a year with your debt counsellor. This way, you can identify any discrepancies and take corrective action if necessary.

Exiting Debt Review – The Finish Line

The ultimate goal is debt freedom, and yes, you can eventually exit debt review! Here’s the key:

  • All Debts Settled (Except Home Loan):This includes credit cards, personal loans, and retail accounts. Once everything is paid off, excluding your home loan, you can exit.
  • Clearance Certificate:Only aregistered debt counsellorcan issue this official document, proving your successful completion.

We Can Help!

If you’re feeling stuck in debt review, we can help. We’ve a registered debt counsellor dedicated to guiding you through the process effectively. We understand the frustration and can help you assess your situation, explore transferring to our services (if that’s the right fit), and ultimately, achieve debt freedom.

Remember: Debt review is a journey, not a destination. With the right support and a positive attitude, you can reach the finish line!

Empathy and Solution-Focused

We understand the frustration of feeling stuck in debt review. Get the personalized support you need – schedule a free consultation with our experienced debt counsellor today.

Frequently Asked Questions (FAQs) about Transferring Debt Counsellors and Exiting Debt Review

Transferring Debt Counsellors:

  • Q: Can I transfer debt counsellors during debt review?

  • A: Yes! You have the right to transfer to a new debt counsellor if you’re unhappy with your current one.

  • Q: What are valid reasons to transfer debt counsellors?

  • A: Some valid reasons include poor communication, lack of progress updates, or feeling your situation isn’t being addressed effectively.

  • Q: Are there any costs involved in transferring debt counsellors?

  • A: You may be responsible for outstanding fees owed to your previous debt counsellor, but the new debt counsellor cannot charge for services already completed (application, restructuring fees, etc.) They can only charge after-care fees from the date of transfer.

Exiting Debt Review:

  • Q: When can I exit debt review?

  • A: Generally, you can only exit debt review once all debts (excluding a home loan) have been settled in full.

  • Q: Who can issue a clearance certificate?

  • A: Only a registered debt counsellor can provide an official clearance certificate, verifying your successful completion of debt review.

  • Q: What happens after I exit debt review?

  • A: It’s crucial to maintain responsible financial habits to avoid falling back into debt. Consider creating a budget and sticking to it to manage your finances effectively.

We Can Help!

If you have further questions about transferring debt counsellors or exiting debt review, don’t hesitate to contact our office. We’re a team of registered debt counsellors dedicated to guiding you through the process and achieving financial freedom.

Registered with the National Credit Regulator (NCRDC764)

Seeking ITC Clearance

You can easily schedule an online appointment.

Bernidene Thieroff

Bernidene Thieroff

CEO/ Registered Debt Counsellor : NCRDC764

Among the seasoned professionals in the debt counselling industry is Bernidene Thieroff (NCRDC764), a Registered Debt Counsellor with over 16 years of experience. Her extensive knowledge and hands-on expertise have made a significant impact on the lives of numerous individuals and families struggling with debt.

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