Debt restructuring involves negotiating with credit providers on behalf of a consumer who is struggling to pay their debt commitments to a manageable monthly payment so that they end up paying off their debt. Debt restructuring is also known as debt review and is as per Section 86 of the National Credit Act.
The Benefits of Debt Restructuring
There are benefits of the debt restructuring and speaking to our debt advisers which include:
- Debt Sage debt restructuring consultants will give you advice about better ways of managing your money and suggesting ways of dealing with debts that you might not know about;
- making one regular monthly payment allows you better control over your finances;
- gives you peace of mind – in many cases, you will no longer be contacted by your creditors or debt collectors;
- your creditors may agree to reduce or freeze interest and charges on your debt and may stop other action such as taking you to court.
Choosing your debt restructuring company
When choosing a debt restructuring company, you should make sure that:
- the debt consultant is licensed by the National Credit Regulator (NCR); Debt Sage debt consultants are registered by the National Credit Regulator.
- the debt consultant discusses all the possible options available to you to deal with your debt problem;
- you’re told clearly at the start how much it will cost to arrange the debt restructuring plan and how you will pay that cost;
- you understand what will happen if the debt consultant withdraws running the plan for you because you’ve missed payments
Check the terms of your debt restructuring plan
Before starting a debt restructuring plan, the debt consultant should make clear to you the terms and conditions, including:
- how much money you’ll be expected to pay each month and for how long;
- the reasons the debt consultant might stop running the plan for you, for example, if you don’t make the required monthly payments.