Be careful with “cheap” debt review programs

It’s a good rule of thumb to remember that the lowest Instalment equals costly consequences.

While cost-cutting can be great, it should not be the top priority when searching for Debt Counsellors. Consumers often suffer from serious consequences if they choose the cheapest debt review. However, all Debt Counsellors give priority to the client.


  1. The instalment must be sufficient to cover the capital plus interest. If the instalment is not sufficient to cover capital plus interest
    1. An Order will not be granted by the Court or National Tribunal.
    2. You are not protected against legal action if you do not have a Debt Review Order.
    3. If the Court rejects your application, it ends the legal protection of the Debt Review process. Any arrears are immediately due and payable.
    4. To avoid repossession and further legal action, the arrears must be paid immediately. If a bond is required, the entire outstanding balance may become due and payable upon the issuance of legal action.
  2. Creditors will only reduce interest if the client makes a reasonable offer.
  3. The creditors won’t reduce interest rates if there isn’t enough distribution instalment. This means that the consumer will have to repay more money.

How do you calculate the monthly interest that is added to your account?

Current outstanding balance divided by Annual Interest Rate percentage =, divided by 12

Remember: If your monthly interest is less than the quoted debt review instalment, your Debt Review may not be accepted by Courts. You could end up in worse shape after Debt Review than before.

Looking for advice? For sound, professional and honest debt advice, contact us by filling in the form below.