Welcome to our Debt Rescue Review. If you are reading this, it is probably because you are looking for a debt counselling company due to financial strain. In this article, we will explain how Debt Rescue works, what their reputation with clients is, and whether they are a good company to go with.
The pandemic and rising prices of consumer goods over the last few months have placed stress on more and more household finances. More people are struggling to honour debt payments as financial resources shrink. In South Africa, close to 75% of household income is spent on debt repayments, leaving a significantly small portion to manage household expenses.
If your debt is out of control, taking the necessary steps to alter the situation by getting debt counselling might be the only way to take control of your finances. Debt Rescue has an upstanding long-term success rate in helping South Africans get back to healthy finances.
Debt Rescue Review Summary
Debt Rescue is a reputable debt review company with expert attorneys and accountants who specialise in debt review. With more than 12 years in the industry, they offer their clients compassionate and confidential customer service. Some clients have reported negative experience with the company, but the overall consensus is that they are one of the best debt review companies in South Africa. Their long-standing relationships with creditors give them the advantage to negotiate lower instalments and better interest rates. Once Debt Rescue puts you under debt review, your creditors will not be able to take any further legal action against you, and your assets are protected.
What is debt counselling and how does Debt Rescue help?
Debt counselling is a structured debt rehabilitation process that tries to assist consumers who are seriously struggling to survive financially. Debt Rescue is a debt counselling company that was founded in 2007 and has grown to be one of the largest in South Africa. They offer clients debt review services backed by an experienced team of attorneys and accountants that facilitate debt review journey.
The counsellors at Debt Rescue consult with you and look at your finances to determine if you are over-indebted and need a structured repayment plan. As part of the Debt Rescue service, your debt counsellor will engage with your creditors to negotiate lower interest rates and repayment arrangements.
Your debt counsellor will then present you with a new reasonable monthly budget and debt repayment plan designed for your specific needs during the debt review process. Once your debt is restructured, you simply need to make one reduced monthly debt payment to Debt Rescue, and they then pay all of your creditors on your behalf. Furthermore, you will also receive advice and direction on managing your finances to achieve a debt-free future in the long run.
Debt Rescue values its impeccable reputation by guaranteeing world-class customer service and debt management support. Getting debt counselling is made simple for those who are not comfortable with face-to-face consultations. You can opt for a consult over the phone or through email. Understanding the process will never be a concern, for counselling is offered in 9 South African languages, and all the legal jargon is broken down to understandable terminology. Counsellors take the time to ensure that this sensitive process is approached with empathy and confidentiality.
How does the process of debt review work?
Debt review is a complex legal process that you cannot do on your own. During the debt review process, you are given legal protection from creditors allowing you to pay off your debt without further legal action from creditors. Once you have decided to undergo debt counselling with Debt Rescue, a counsellor will take you through the various steps to get started.
Step 1: Complete the debt assessment
The debt assessment is an easy to use form on Debt Rescue’s website that takes just a few minutes to complete. You will be required to provide information about yourself and your spouse. On this assessment, you will provide your income and expenses as well as information on your creditors and outstanding amounts. Don’t forget to attach your ID copies and payslips.
Once this step has been completed, the consumer can continue or opt-out of the Debt Rescue debt review. The assessment is completely free, and consumers are not held to any obligations if they decide not to continue.
Step 2: Debt Rescue assesses your application
When Debt Rescue establishes that you are over-indebted after the assessment, your debt counsellor will require you to fill out the application form. The application requires you to provide personal information and further information on your creditors.
In this step, your debt counsellor will review your debt to determine if your monthly debt exceeds your monthly income. Debt that exceeds monthly income immediately indicates that you need assistance restructuring your payment plans.
Step 3: The client is placed under debt review
When you qualify for debt review, Form 17.1 will be sent out as a notice to the National Credit Regulator, all credit bureaus and all your creditors. This notice will inform all necessary parties that you have applied for debt review, preventing them from taking legal action against you. It also requests that your credit providers issue a Certificate of Balance (COB) to your debt counsellor. Your counsellor will have 60 days to finalise the debt review process.
Step 4: Restructuring your payment plans
Your assigned debt counsellor will negotiate with your creditors to find the most affordable payment plan that works with your budget at this stage in the process. Debt Rescue has a very high success rate in debt management due to their long-standing relationships with creditors. Once all your creditors agree to the suggested payment plans, you will only need to make one payment to Debt Rescue each month, and they then handle the distribution to each creditor.
This step ensures that one’s debt reconciles with one’s income. This is made possible through reduced instalments and lower interest rates. Customers will also have some money left over to meet their living expenditures as a result of this.
Step 5: Repayment plan is finalised and becomes a court order
A Debt Rescue attorney will now petition the magistrate’s court to make the new payment plan a court order that all relevant parties must follow. When the court order is approved, creditors will be notified, preventing them from having any claim over the client’s assets.
The repayment plan could range from three to five years. If a consumer makes a lump sum payment to repay the debt or makes expedited payments, they might terminate the agreement sooner than usual.
Debt Rescue Reviews
Debt review has an overall positive rating from clients across various review platforms. On Google, they have an average rating of 4.0 while on Hello Peter, they have a rating of 3.7. These are pretty high for these platforms, considering that, especially with Hello Peter, the sites are mainly used by people to report negative experiences. The company is also trusted by national institutions and often consulted by the news when news regarding debt and personal finance is required.
Some of the negative reports are of insufficient communication from Debt Rescue and being contacted by creditors while under debt review. The majority of reviews, though, are positive, with Debt Rescue often receiving good reports for their competitive rates and successfully helping clients to get rid of their debts through the debt review process.
Pros and Cons
- One affordable monthly payment.
- It enables consumers who are behind on their credit repayments to make ends meet by allowing them to negotiate new repayment arrangements with creditors.
- Clients obtain protection from any legal action taken against them by creditors.
- Debt counsellors negotiate better interest rates and repayment terms that consumers may not have been able to negotiate themselves.
- Assistance is provided in drawing up a budget.
- Debt Rescue has more than 12 years of experience in the industry.
- A team of attorneys and accountants with expertise in debt review.
- Guidance is offered on long-term finances.
- Consultation over the phone or email is available for those who cannot do face to face consults.
- The process is kept confidential.
- Some customers do report lack of communication from Debt Rescue.
- Consumers will be blacklisted while under debt review.
- If a payment is missed, the consumer loses all legal protection against creditors
- The debt review stays on your credit record till the debt repayment plan is completed.
- If you decide to exit debt review before your payment plan is complete, you will no longer have legal protection.
- The consumer cannot apply for any new credit during this time.
Is Debt Rescue Legit
Debt Rescue has built its reputation in offering every client compassionate debt counselling from only the best in their field. Their expert attorneys have considerable experience and a thorough understanding of the National Credit Act. The many years of establishing itself in the industry have built solid relationships with creditors, contributing to its overall success rate.
As a regulated debt counselling provider, Debt Rescue’s fees are affordable and in line with National Credit Regulator (NCR) regulations. Consumers who choose Debt Rescue are guaranteed support from start to finish. A provisional repayment plan will be created for you in the first 5 days to get the process started, and at the end of the process, you will receive a Clearance Certificate indicating you are all paid up. The Clearance Certificate is forwarded to the credit bureaus, who will subsequently clear your record of the debt as well as the debt review itself.
Debt counselling will not only assist you in getting out of debt, but you will also learn how to take charge of your finances.
Companies Like Debt Rescue
There are only a few debt review companies in South Africa that are at the scale of Debt Rescue. Examples of these are Debt Busters and National Debt Advisors. These are the companies that have been around for 10 years or more, and have a long track record with helping clients. Debt Busters is headquartered in Cape Town, while NDA is in Durban. They are all good but the edge still goes to Debt Rescue if you need help deciding. They have furnished a lot of info that clarifies debt review, and are consulted by national news, which is a testament to their reputation.
The conclusion of our Debt Rescue Review is that they are a highly reputable company with a good track record. Among the options available, they are one of the better ones. Debt Rescue has extensive experience within the industry, helping consumers achieve financial freedom. Protecting your assets while paying back outstanding amounts with an affordable payment plan will require you to make timely payments and maintain this for however long you have negotiated. Having this plan in place will bring you some relief to manage all other living expenses.