Times can be tough. Be it COVID -19 related or not, surviving financially can lead to us taking out high interest, unsecured debt in order to fund our lifestyles. While at first this may seem harmless, it can quickly develop into a mountain of debt that can seem impossible to get out from under. But what then? What do you do if you can’t pay it back? One method many lenders use is to put you under debt review. But what is debt review? Is debt review the only option?
What is Debt Review?
Debt review is a formal procedure to help those who cannot afford to pay off their debt. It involves dealing with debt counsellors who will access your debt and deem you to be overly indebted.
They will then work with you and your creditors to arrange a structured payment plan.
While in this process, you will be heavily restricted on financial activity. For example, you will not be able to take out more loans, Credit Cards, Cell Phone Contracts, Internet Contracts, etc. This is due to the fact that the bank and service will view you as having too much debt, and will flag you as being under debt review with the credit bureaux.
This level of restriction can limit your potential of reaching financial freedom. Many people under debt counselling and debt review have also complained about being treated like a number and not like a person. This leaves many people feeling stranded and wondering how they will ever get out of debt review.
How to get out of Debt Review?
The only way to get out of debt review is to pay off your debt and show yourself as being able to pay off what you owe. However, this can seem impossible when you are barely making ends meet as it is. But what if there was a better alternative?
Our Bond Optimiser product has been specially designed to cater for people in your situation. Our team is ready to assist you in getting out of debt review and clearing any of the judgments against your name.
We work to get you out of high interest debt and into a more affordable monthly repayment. Our surveys and studies have shown that our average customer saves R7 000 a month by using our service!
We can help you in the following ways:
- Getting out of high interest debt and switching to a more affordable option by using your property and existing bond.
- Clearing Judgements against your name
- Getting you out of Debt Review
- Get cash for important life events such as your child’s university, weddings, and unpredicted circumstances etc.
- Settle your accounts in arrears.
- Increase your monthly cash flow.
- Become more financially savvy and financially independent.
- Give you the personalised financial treatment you have been looking for.
Bond Optimiser allows you to get back on your feet and live your life again. By using the positive value in your property, our team can work with you to use that equity to consolidate your debt into your bond. This can lead to lower interest rates and a much more affordable monthly payment.
How Home Bonds Work?
Before you can understand how to refinance your debt into your home bond, you need to understand how a home bond works and the components that make it up.
A home bond is a property backed loan that allows you to purchase a house without having the full capital required on hand. You often have to put down a deposit, industry average is 10%, and then there are strict affordability requirements to get approved.
There are three main components in a home bond:
- Capital Owed – Capital owed is the amount of money you owe from your initial loan before interest and fees. If you were to take out a R1 000 000 bond, your capital owed would start at R1 000 000 and decrease from there.
- Interest Owed – This amount is the amount of money you owe over time as interest. This amount will decrease as you make repayments and can decrease more if you make early or lump sum payments. If your bond has a variable interest rate, the interest owed can change with the interest rate changes.
- Equity Available – This is the amount of money you have paid off in your bond. If we use the R1 000 000 example, after a number of years you have paid the amount of capital owed down to R200 000. This means you equity in your bond in R800 000. While this may not be directly available to you, it means that you owe less than your home is worth and have equity available.
Debt Review can sometimes feel like more of a mountain than being indebted. The lack of personal service and restrictive environment can make it difficult for you to thrive.
However, this does not need to be the case thanks to Bond Optimiser’s Debt Repair program. Our team is ready to assist you by using your home bond to consolidate, reduce your debt and get you out of debt review.
Is it Worth it?
There are not many alternative options when you are in debt review. The only way of getting out of debt review is if you win the Lotto, or inherit enough money to pay off all your debts. The Bond Optimiser program has been proven to save clients money and equip them for a better financial future. Some of our clients are saving up to R7 000 a month by refinancing their debt into their home bond, and allowing them to be removed out of debt review.