Can I exclude bonds (home loans) from debt review?
DebtBusters does not recommend that you exclude your home loan from the debt review process. Many South African consumers are under the impression that excluding your home loan from your debt review will help prevent them from losing their homes. However DebtBusters and The Debt Counsellors association in South Africa, definitely recommended that their home loan is included in the debt review process.
The National Credit Act implemented the inclusion of your homeloan in the debt review process, to assist consumers with keeping their homes. The NCA requires that all debt agreements are included in the debt review. In addition to including your home loan under debt counselling, the following tips should be taken into account and will assist with making sure you are able to pay off your debt in no time.
Reducing interest rates on all current debt repayments, as well as other debt expenses, with the process of debt counselling is a beneficial solution until you have paid off all of your unsecured debts and therefore, it will allow you to go back to your normal home loan repayments.
When under debt counselling it is best to include your home loan as a defined debt repayment on your home loan with be included in the debt review. The debt repayment should either be equal to or approximately 80% of the contractual repayment. This would extend the repayment terms by 20%, making the month debt repayment an affordable amount.
Debt counsellors will assess your credit agreements and determine whether you have been a victim of reckless lending. In the event that credit has been recklessly lent to a consumer, a court can be approached in order to declare the debt as reckless and the repayment of that debt will be written off. This will ensure that the client is placed in a better financial position and increase the affordability of their debt.
Debt counsellors will efficiently review your living expenses and financial situation by drawing up an affordable monthly budget and making sure that you have made the maximum amount of your funds available for debt review. This will give credit providers peace of mind, as they will know that a debt counsellor is contributing the consumers maximum amount towards settling their debt.
For more information on Debt Counselling and DebtBusters contact a debt counsellor on 086 999 0606. With these about tips in mind, as well as by not excluding your home loan from your debt review, you will be debt free and stress free in no time.