When I am under debt review, will my outstanding debt keep growing?
Debt review in South Africa was implemented in 2007, as a means for regulating unethical debt management companies and practices. DebtBusters is a debt management company situated in Cape Town, which targets South African consumers struggling with debt.
In the past, when under debt review in South Africa, it may have been possible for outstanding debt to keep growing. However, according to the new industry rules, debt counselling rules engine that was implemented in February 2011, the problem has been eliminated and when you are under debt review, your outstanding debt will not continue to keep growing.
DebtBusters expert financial consultants are responsible for implementing debt review in an ethical and proficient manner. With an acceptable debt repayment plan, DebtBusters has mandates with the banks in South Africa, as well as a vast array of other Credit Providers, to reduce interest rates as low as 0% for unsecured debt, and as low as 7.5% for secured debt (repo +2%). Once DebtBusters is able to secure such an agreement, debts will certainly be reduced over time.
Approximately 80% of DebtBusters clients solve inside debt counselling rules engine and the remaining 10% solve outside debt counselling rules engine. This means DebtBusters manage to make agreements with credit providers on behalf of over 90% of their clients, extending terms and reducing interest rates to 0% if necessary.
This allows DebtBusters to liberate the vast majority of debt review clients in South Africa from unsecured debt within 60 months. The first step involves sending proposals to the banks within 20 business days of applying for debt review.
Many banks will amend the interest rates on the client’s debt from the date that they accept the proposal, thereby halting the growth of debt. If clients miss a payment after this agreement has been made, the original interest rate may be reinstated, thus making it an imperative that payments are made on time every month.
DebtBusters debt review services are implemented to help South African consumers generate wealth and contribute to the development of the country.