DebtLite Solutions
FAQ2024-10-17T13:20:04+02:00

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Find quick and clear answers to the most common questions about our debt review services. Whether you’re just starting your journey to financial freedom or need specific details.

62.4%

Debt-to-Income

As of 2023, the average debt-to-income ratio is 62.4%, meaning for every R100 earned – R62 is owed

R2.78 Trillion

Household Debt

The outstanding household debt reached R2.78 trillion in the second quarter of 2023 at a rate of 5.2%

40%

Over-Indebtedness

About 40% of credit-active consumers in South Africa are over-indebted, struggling to meet their debt obligations.

Eye-Opening Facts About Debt in South Africa

Understanding the landscape of debt in South Africa is important for making informed financial decisions. You can better navigate your own financial journey and seek appropriate debt management solutions when needed.

Debt-to-Income

South African consumers owe as much as 75% of their monthly income to creditors. Significant portion of earnings goes towards repaying debt.

Age and Debt

More than half (53%) of individuals seeking debt review are between the ages of 31 and 45. Increase of 39% in applicants under the age of 25.

Home Loan Struggles

Approximately 57% of South African consumers are struggling to pay their home loans. This highlights the widespread financial stress.

Credit Card Debt

Nearly 59% of consumers are battling to pay off their credit card debt. High-interest rates leads to financial burdens.

Financial Awareness

Around 39% of consumers do not know the interest rate on their savings accounts, and 22% are unaware of their banking fees.

Impaired Credit Records

Over half of the 19 million credit-active consumers have impaired credit records. They are more than three months in arrears.

Over-Indebted

More than 11 million South Africans are considered over-indebted, struggling to meet their debt obligations.

Debt and Savings

Only 23% of South Africans have any money left at the end of the month, with the remaining 77% being flat broke.


Common Questions About the Debt Review Process

What is Debt Review? 2024-09-06T12:03:58+02:00

Debt Review is a legal process designed to help over-indebted consumers manage and reduce their debt through structured, affordable repayments.

How does Debt Review work?2024-09-06T12:04:20+02:00

A debt counsellor assesses your financial situation, negotiates with your creditors to lower your monthly payments and interest rates, and consolidates your debts into one manageable payment.

Who qualifies for Debt Review? 2024-09-06T12:04:33+02:00

Anyone who is over-indebted and struggling to meet their monthly debt obligations can apply for Debt Review.

How long does the Debt Review process take?2024-09-06T12:04:47+02:00

The duration varies depending on the amount of debt and your repayment capacity. It typically lasts until all your debts are paid off under the new terms.

Will I be blacklisted if I am under Debt Review?2024-09-06T12:05:02+02:00

No, you will not be blacklisted. However, a flag indicating you are under Debt Review will be placed on your credit record, which will be removed once you complete the process.

Can I apply for new credit while under Debt Review? 2024-09-06T12:05:15+02:00

No, you cannot apply for new credit while under Debt Review. This is to ensure you focus on repaying your existing debts.

What happens if I miss a payment during Debt Review? 2024-09-06T12:05:27+02:00

Missing a payment can jeopardize your Debt Review agreement. It’s crucial to make all payments on time to maintain the protection and benefits of the process.

How does Debt Review affect my credit score? 2024-09-06T12:05:37+02:00

While under Debt Review, your credit score may initially be affected. However, as you make consistent payments and reduce your debt, your credit score can improve over time.

What happens after I complete Debt Review? 2024-09-06T12:05:49+02:00

Once you have paid off all your debts, you will receive a clearance certificate. This certificate will be sent to credit bureaus to update your credit record, removing the Debt Review flag.

Can I exit Debt Review before completing the process?2024-09-06T12:06:01+02:00

Exiting Debt Review before completing the process is possible but not recommended, as it may leave you vulnerable to legal action from creditors.

What is over-indebtedness?2024-09-16T08:58:43+02:00

Over-indebtedness occurs when a person or business has more debt than they can manage with their current income, making it difficult to meet financial obligations. This often leads to financial stress and the need for debt management solutions like debt review.

“Good day, I would like to thank DebtLite Solutions for providing me with a quality service on my accounts and reduction (interest free). Keep up the good work”

Rifat M

Your journey to financial freedom starts here. Reach out now and take control of your future!

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