Debt review is a process where a consumer who is over-indebted has their debt restructured by a debt counsellor. While it can provide much-needed relief for those who are struggling to make ends meet, it can also be a frustrating and difficult process to navigate through. If you are currently going through debt review, or have completed it and want to get off it, this article will provide you with some tips and strategies to achieve financial freedom.
Understand Your Debt Review Contract
Before you can get off your debt review, you need to fully understand your debt review contract. Your contract will detail the terms of your debt repayment plan, including the interest rates, any fees and charges, and the length of the repayment term. Once you have a clear understanding of your contract, you can begin to work towards fulfilling it.
Make Payments on Time
The most important factor in getting off debt review is to make your payments on time. Late payments can negatively affect your credit score, and can result in legal action being taken against you. To avoid this, make sure you have a budget in place to ensure you can make your payments in full and on time every month.
Pay More Than the Minimum
If you can afford to, pay more than the minimum monthly payment. This will help you pay off your debt faster and save you money in interest charges. Even adding an extra R100 or R200 per month can make a big difference in the long run.
Consider Debt Consolidation
If you have multiple debts, debt consolidation may be an option for you. Debt consolidation involves taking out a loan to pay off all of your debts, leaving you with just one payment to make each month. This can make it easier to keep track of your payments and can often result in a lower interest rate, saving you money in the long run.
Keep Your Accounts in Good Standing
While you are on debt review, it is important to make sure your other accounts are in good standing. This includes paying your rent, utility bills, and other debts on time. If you have any unpaid debts or overdue accounts, it can negatively impact your credit score and make it harder for you to get off debt review.
Conclusion
Getting off debt review requires a lot of discipline and hard work, but it is achievable with the right strategies in place. By understanding your debt review contract, making payments on time, paying more than the minimum, considering debt consolidation, and keeping your accounts in good standing, you can take control of your finances and achieve financial freedom.
