Categories: DebtNewsReviews

DebtSafe Review 2021

Published by
Lethabo Ntsoane

DebtSafe provides debt counselling and debt consolidation services and these services are available to all South Africans. The company is located in Limpopo, South Africa, and has a presence in all 9 South African provinces. 

DebtSafe Summary

DebtSafe is a debt management company that was founded in 2009 in Limpopo, South Africa. Since its existence, the company has managed to serve over 30 000 clients across South Africa. The company has between 100 to 200 employees that are dedicated to serving the company’s clientele in South Africa. The company specialises in debt review, debt counselling, debt consolidation, debt relief, and debt management. 

DebtSafe is registered with the National Credit Regulator and has registration number NCRDC1078. The company has been able to offer debt management services since registering with the National Credit Regulator in 2009 . DebtSafe is growing and now has a physical presence in Limpopo and in Gauteng province. 

Debt Review Solution

DebtSafe’s debt review solution strives to fix the debt status of South Africans. The product provides a gateway for individuals to be debt-free. The debt review solution comes as a process. There are stages that need to be followed so that one can be debt-free. 

However, most of the following will be done by DebtSafe and will act as your agent. This will help speed up the process of getting you debt-free since the company has over a decade of experience in debt counselling. 

This product is available to those that are over-indebted and are overwhelmed by the repayment of the credit that they have with different lenders. 

Debt Review Process

The DebtSafe debt review process comes in five steps which are designed to assist the client to become debt free. All of the 5 DebtSafe debt review steps are discussed below. 

Step 1: Application for free Assessment

The process starts with a free assesment of the the client . The assessment will require sensitive information from the applicant. Information that is presented is protected and is confidential. Assessment is taken in order to determine whether or not you are over-indebted and you are failing to meet your financial obligations as they arise. 

After the completion of the financial assessment, a DebtSafe consultant will contact you with regard to your assessment. If you qualify for debt counselling, you will then need to start the application. 

Step 2: Letting creditors know

DebtSafe will notify creditors of your current action of using the services of debt review. By notifying creditors, you will be protected by the National Credit Act and you can then move to the next step of being debt-free. 

Step 3: Negotiation with Creditors

DebtSafe will commence negotiations with creditors on your behalf to structure a repayment plan that is suitable to your current financial status. Restructuring your repayments will allow you to afford to pay your installments based on what you currently afford. 

The interest rate on your loans will be renegotiated. Interest rates will be renegotiated so that you can save money by paying less interest on your existing loan. 

Step 4: Approval of the plan

The plan will need to be approved by the creditors. After the approval of the repayment plan, with the help of the company’s attorneys, DebtSafe will apply to the magistrate’s court on the client’s behalf to have the restructured repayment plan approved as a court order

Step 5: Making Payments

Repayment will only include a single-quoted amount that will repay your overall debt. This is made possible through the use of a payment distribution authority whose role is to receive payment on clients’ behalf and distribute the funds to creditors. Funds will be distributed according to the specifications of the repayment plan

After settling the debt DebtSafe will issue you with a clearance certificate. Credit bureaus will also be issued with a clearance certificate to clear your credit record. 

Benefits of the Debt Review

Debt Review will give you both financial and non-financial support. You will:

  • Be able to restore payments and switch from being in arrears to paying on time.
  • Have cash flow to run your household since you will be paying reduced installments.
  • In the end, you get a clean credit record since you won’t be owing anyone money at this point.
  • The program protects you against assets repossessions.
  • Get a free financial assessment before you proceed to the debt review process.

Debt Consolidation

One of DebtSafe’s product offerings is a debt consolidation service. Individuals with many credit products who want to consolidate them into a single credit line might use the company’s debt consolidation services. The debt consolidation solution includes a free evaluation to determine whether debt consolidation is the best option for you. 

The company’s debt consolidation product provides a debt consolidation solution that doesn’t require any consolidation loan. DebtSafe has specialist negotiators in place who negotiate with creditors on your behalf so that you can get reduced fees and reduced repayments.

Competitive advantages of DebtSafe

  • The company has years of experience in providing debt counselling services and debt consolidation services.
  • DebtSafe offer services across South Africa.
  • The company has a proven track record when it comes to offering debt solutions.

Competitive disadvantages of DebtSafe

  • There are no insurance products that are aimed at overindebted individuals.
  • The company lacks expansion capacity as newcomers have been able to serve more clients than DebtSafe.

Conclusion

The company is one of the few debt counselling companies that were registered in the 2000s, therefore, the company holds experience that many debt management companies do not possess. 

DebtSafe has not been issuing debt management products like the other debt review/management companies, especially those that were registered in the 2010s. Products such as insurance catered to over-indebted South Africans do not form part of the product offering at DebtSafe. 

Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted at lethabo@rateweb.co.za

Published by
Lethabo Ntsoane
Tags: DebtSafe