Open my info

my finds

remove bookmarks
    You don't have any bookmarks saved. Click the star icon on a panel to add it to your bookmarks. Your bookmark has been saved. Bookmark removed.

    bank better, live better

    how debt review can provide debt relief

    Debt review can be a way to protect yourself when you cannot keep up with your monthly payments.

    Debt Review and Debt Relief

    Sometimes things happen that could have you struggling to make your debt repayments. It’s important to take action immediately, and not to wait until the situation gets worse.

    • Look at your budget and cut unnecessary expenses
    • Contact your credit providers directly to make arrangements
      Stick to your arrangements and don't take on more credit. In a situation like this, it’s important that you protect yourself and your assets. Contact our Client Care Centre on 0860 10 20 43 to find out what your options are.
    • Consider applying for debt review

    What is debt review?

    Debt review is when a debt counsellor helps you to restructure your repayments in such a way that they become more affordable, allowing you to better manage your debt until it has been paid off.

    How does debt review work?

    • When you apply for debt review, the debt counsellor will let your credit providers and the credit bureau know about the application
    • The debt counsellor will then assess your financial situation to see if you are over-indebted
    • If you are found to be over-indebted, the debt counsellor will calculate what you can afford to pay towards your debt each month
    • The debt counsellor will then submit a proposal to your credit providers showing what you can afford to pay
    • At the same time, the credit bureaus are informed that you are undergoing debt counselling
    • Once the proposal is accepted and/or a consent order has been obtained, your restructured repayments are combined into a single monthly repayment
    • You make this payment to a Payment Distribution Agent who distributes it to your credit providers
    • Once you’ve repaid the agreements that were included under debt review or if you’ve shown the financial ability to meet future obligations like your bond repayment, you will be given a clearance certificate (certificate of debt rehabilitation)
    • Once you have your clearance certificate, you’ll be able to re-enter the credit market

    Why debt review?

    • You are over-indebted and despite cutting expenses and making arrangements with your credit providers, you are unable to meet your debt commitments and don't have sufficient income left to cover your necessary living expenses
    • Your debt repayments will be combined into one affordable monthly instalment
    • Your debt counsellor will negotiate lower fees and interest
    • Legally, your credit providers cannot take action against you while you are under review

    Important to know

    • Debt review is not the same as debt consolidation. While you’re under debt review, you are listed at the credit bureau and you cannot apply for any new credit

    • Debt review is not free. Ask your debt counsellor to explain all the fees and when you will have to pay them

    • Debt review is a legally binding plan. Your renegotiated terms are set by the court, and you are legally required to pay it
    • Your credit providers, whose debts were included under debt review, will not take action against you while you’re meeting your commitments under debt review
    • Keeping up with your new instalments is important. If you don’t, your credit providers can withdraw from debt review and you could face legal action

    Was this article helpful?

    5 signs you may have a credit problem

    5 signs you may have a credit problem

    Credit can be handy, but it is possible to get too much of a good thing. Here’s how to tell if it’s time to get your credit under control…

    Read now
    is your credit profile costing you?

    is your credit profile costing you?

    Banks and businesses use your credit profile to get a picture of how credit worthy you are, which is why it’s important to manage your credit properly.

    Read now
    understanding interest

    understanding interest

    You know you pay interest on what you borrow, but do you understand it? Capitec Bank explains it.

    Read now
    the benefits of using credit responsibly

    the benefits of using credit responsibly

    Responsible credit means your credit record stays in good shape. Capitec Bank shows you why and how to use credit responsibly.

    Read now