The Southern African Institute for Financial Freedom
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The real risk involved

Even though the debt review process has the backing of the National Credit At there are some loopholes that the credit providers love to exploit.

In all, the debt review process is a very useful tool to address over indebtedness and ensure that consumers who struggle financially get rehabilitated into the credit market. Through debt review consumers are able to pay significantly less than the original requirements by the credit provider. To show an example we can provide some stats from an actual debt review case.

Standard Bank Credit Card Installment – Reduced from R1570 to R583.62. That is a 63% reduction in the installment amount. Further there was a Direct Axis Personal loan with an interest rate of 15.5% reduced from 28%. The installment on this loan was R4070 and is now R1495. A total reduction of 63.2%. Overall this case had 14 accounts that had to be restructured… including a vehicle finance account. It has seen an overall reduction rate of 60%.

Because we see such significant reductions the credit providers are looking for the tiniest slip-ups and ways to terminate the process. The same company who managed the case above had to defend 28 cases where the credit provider simply initiated legal action against the consumer between January 2013 and October 2013. They received a total of 1239 unlawful terminations by credit providers which they had to address and defend. This amount represents almost 58% of all their cases.

What we can see from the stats above is that no matter where you are or who your debt counselor is… credit providers will attempt to terminate specific accounts in a debt review. To defend these matters is not always easy in terms of finances. Unfortunately the cash strapped consumer is the one pulling on the shortest end in such a situation.

This is where SAIFF will be a life saver. By joining SAIFF you as a consumer can rest assured that your debt review is well looked after and that no matter what comes your way… with SAIFF you will be able to face it head on.

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If you would like one of our call centre agents to call you with more information about the SAIFF offer, kindly send us a email to the following address: