In 2007 the South African government introduced the new National Credit Act.  These new laws were aimed at helping, protect consumers’ rights and balancing them with the need to repay Debt to Credit Providers.

Debt Review is a formal process, that a consumer who cannot afford to pay his/her Debt, may follow in order to alleviate his/her plight.  The struggling consumer may make use of the assistance of a Registered Debt Counsellor to assist in this process.

The Debt Counsellor will interview and assess the consumer’s situation, assist in completing an application form and do an initial assessment.  Formal notices, advising Creditors of the application will be sent to all Credit Providers, who are in return expected to provide, the Debt Counsellor with outstanding balances on accounts, interest rates charged and expected monthly installments.

With all information in hand the Debt Counsellor will do a proper investigation to determine whether or not the consumer is over indebted, by looking at the consume’s income and necessary living expenses to determent the amount available to spend on settling monthly Debt.  If the available amount is less than what is required to pay the monthly installments, then the consumer is over indebted and entitled to apply for Debt Review.  If the money available is more than what is required to pay the monthly installments, the consumer is not over indebted and not entitled to apply for Debt Review.