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No steady job, can I go under debt review?

A Fin24 user wants to know if she's allowed to apply for debt review even though she's unemployed.

The user writes: "Can I apply for debt review if I do not have permanent employment but earn an income via another source which may not cover the monthly instalments? I am currently unemployed and will be turning sixty this year. Your response is appreciated."

Wikus Olivier of DebtSafe advises:

Hi there. The duty of a debt counsellor during the debt review process is to put a reasonable payment plan on the table that suits both consumer and credit provider. This is only possible if the debt counsellor has a source of income to work with. Should you be unemployed and do not have a steady income, it is impossible to put a reasonable payment plan on the table. In your case, if there is a steady source of income it can be used to construct a payment plan.

The quality of the payment plan will be determined by the amount you are able to put toward debt repayments as well as the willingness of the credit providers to extend terms and reduce interest rates and fees on the account.

A debt counsellor should be able to do a quick assessment to determine if debt review would be a solution for you. In certain cases the income of a consumer is so low that not even debt review can be used as a solution. Sequestration might become an option in such a case.

Hope you found this information useful.

ALSO READ:
Under debt review and retrenched - what now?
Advice for a user who can't afford instalments
Will I qualify for credit after debt review?

*Do you have a pressing financial question? Post it on our Money Clinic section and we will get an expert to answer your query.

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