What is the difference between Debt Review, Administration and Sequestration?
While debt review, administration and sequestration are all viable debt solutions offered by the National Debt Advisors, there is a great difference between them, and it is recommended that you educate yourself about these difference.
So, what is the difference between Debt Review, Administration and Sequestration?
Debt review is a debt management solution that is aimed at helping South African consumers solve their debt problems. The process of debt review will ensure that the client’s debt repayment plan is extended and their current interest rates are reduced.
Administration is a debt solution that involves the reduction of a client’s monthly instalments. However, unlike debt review, with administration, a credit provider only received a debt repayment once every three months. With this legal process, the debt repayment terms are extended, but the process is lengthy and takes much longer to complete than debt review.
Sequestration is a debt solution that entails selling an individual’s assets in order to pay or reduce their current debt. With sequestration, the court appoints someone to manage the client’s money. Thus leading to a more expensive process.
Debt review, administration and sequestration are all solutions targeted at solving the debt problems that South African consumers face.