Repayment Plan: How Does It Work?

Repayment Plan Under Debt Review
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A repayment plan under debt review is a structured and legally binding plan that helps you pay off your debt in a sustainable way.
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It is an essential tool for anyone struggling with excessive debt and in need of protection from creditors.
This page explains how a repayment plan works, the benefits it offers, and how you can start the regulated process under the National Credit Act (NCA).

Index:
1
What is a repayment plan under debt review?
2
How does it work?
3
Benefits of a repayment plan
4
Protection from creditors and legal action
5
What happens if you cannot meet your payments?
6
How to get started
1. What is a repayment plan?
When you qualify for debt review, your debt counsellor negotiates with your creditors to create a legally binding repayment plan.
2. How does it work?
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Your debt counsellor analyses your financial situation to determine if you qualify.
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Creditors are notified that you are under debt review, preventing them from taking further legal action against you.
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A new repayment plan is created based on your income, debt, and essential expenses.
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This plan is made legally binding through a court order, ensuring all parties comply.
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You make one monthly payment to a Payment Distribution Agency (PDA), which then distributes the funds to your creditors.
3. Benefits of a repayment plan under debt review
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Protection from legal action: Creditors cannot repossess your property or garnish your wages.
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Potentially reduced interest rates: Creditors often agree to lower interest rates
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Fixed, affordable payments: Ensures you can still cover basic living costs.
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You won’t be blacklisted: While credit bureaus are informed of your debt review status, you can apply for credit again once you receive your clearance certificate
4. Protection from creditors and legal action
Once you are placed under debt review:
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Your assets, such as your home and car, are protected from repossession.
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You have time and space to repay your debt without pressure from creditors.
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The court order ensures creditors cannot take further legal action as long as you make your monthly payments.
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Jou bates, soos jou huis en motor, word beskerm teen terugneming.
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Jy het tyd en ruimte om jou skuld te betaal sonder druk van skuldeisers.
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Die hofbevel verseker dat kredieture nie verdere regstappe teen jou mag neem nie, solank jy elke maand jou betalings nakom.
5. What happens if you cannot meet your payments?
If you struggle to make your debt review payments:
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Contact your debt counsellor immediately.
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Avoid ignoring creditors.
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Consider adjusting your budget.
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Kontak jou skuldberader onmiddellik.
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Vermy om krediteure te ignoreer.
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Oorweeg aanpassings in jou begroting.
6. How to get started
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Contact Skuldhulp for a free financial assessment to see if you qualify for debt review.
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Speak to a registered debt counsellor to create a plan that suits your situation.
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Start your journey towards financial stability with an approved repayment plan.