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Dispelling the myths about debt review – part 2

The truth will set you free – and could help you become debt-free.

We continue to separate the facts from the fiction about debt review. Here’s some more useful information for anyone interested in this life-changing process. You too could be one of the 2 000 Octogen customers that we hand out debt-free certificates to every year.

Debt review can zero interest and fees.

When you have a debt counsellor, they can negotiate reduced repayments because they can arrange reduced interest and fees with your credit providers. In some cases, interest and fees can be reduced to nothing (zero), and then every rand you pay goes towards paying off your debt and shortening your repayment period.

Some debt counsellors out there lie.

Like in any profession, there are unscrupulous people who will promise you things they can’t deliver. Some debt counsellors will advertise information that is not correct or is untrue. For example, “we can reduce your repayments by 60%!” But that is just not possible. It is best to avoid these debt counsellors and contact Octogen instead.

You have the power to reduce your repayment period.

Debt review is simply a plan to repay debt over a certain period, with the support of a debt counsellor. Successful debt review customers meet monthly payments and achieve their goal of becoming debt-free. It is also important to note that, at any point in that period, you can increase your monthly payments. When you do this, the repayment period will automatically reduce – and you could be debt-free faster.

Debt counsellors are there to support you.

When you apply for debt review through Octogen, you do so with a specific debt counsellor. In many cases, that counsellor will have a support team that can handle your administrative issues. You have many qualified debt counsellors that can assist you.

When you have finished paying off your debt, you will need a debt-free certificate.

Before a debt counsellor can issue a clearance certificate, they need to make sure the debt has been repaid in full by being in contact with your credit providers so all accounts can be reconciled. It is a misconception that the repayment of debt as per the approved repayment plan will repay the debt in full. In all cases, a reconciliation of end balance differences has to be done before that credit provider stops bothering you ever again. 

Debt review is a court order and can protect you.

Some people are afraid to sign the Consumer Affidavit and don’t understand this is part of the process to allow the Magistrate to approve the repayment plan. The Consumer Affidavit cannot get the Consumer into trouble. The opposite is true, as it will expedite the process and leave you legally protected.

Debt review facts

If you think debt review is the right choice for you, start by checking your own financial wellbeing by taking our quick and easy quiz.