A lot of consumers don’t understand how the process works or what it can mean to them. Because there’s so many questions about the process and the great question, 'What is Debt Review?' we decided to explain it.
When individuals are over-indebted and find it difficult to service their debt, debt review or debt counselling is a good way of ensuring the debt is paid and no legal action is taken.
AN EXPLANATION OF THE PROCESS
The consumer is struggling financially. The next step would be to contact an
NCR debt counsellor to assist him / her with the debt review process.
The debt counselling process can only be followed if there’s no legal action taken against the consumer. If a summons has been issued against the consumer, that specific creditor account will not form part of the debt review application and will therefore be paid over and above the decreased negotiated installment.
CAN MY VEHICLE OR IMMOVABLE PROPERTY FORM PART OF the debt PROCESS?
Yes, your vehicle and immovable property can be part of the process.
Debt review is a great remedy if the consumer can afford the monthly repayment plan. In some instances, the programme is not recommended, mostly due to affordability and/or legal action taken against the consumer for creditor accounts.
The debt counsellor will contact the creditors and negotiate lower interest rates on behalf of the consumer. The creditors aren’t obliged to accept the terms of the debt review, and as a result, they can request an increase in the monthly repayment of their accounts.
When will I be done with the debt counselling process?
The total debt plus interest, if applicable, must be paid in full before the consumer will be done with the Debt Review Programme.
Should the consumer decide to
cancel the process prematurely, they need to contact the Debt Counsellor which will explain the process to the consumer.
IS IT WISE TO CANCEL THE PROCESS PREMATURELY?
This is not recommended unless the consumer can afford to pay the original contractual installment together with any arrears due to the Debt Review process.
WILL THE CREDITORS LET ME KEEP PAYING THE DECREASED NEGOTIATED INSTALMENTS IF I CANCEL OR WITHDRAW FROM THE PROCESS?
It is highly unlikely that the Creditors will accept the negotiated installments if the consumer want to withdraw or cancel the Debt Review against his / her name.
BENEFITS OF THE DEBT REVIEW Programme
1.
One affordable installment is paid monthly.
2.
If the Debt Counsellor had done his / her Job properly, they would have negotiated lower interest rates, and in some instances, zero-rated interest rates.
3.
The consumer does not need to deal with harassing creditors daily; the debt counsellor will deal with the creditors.
4.
Creditors are not allowed to contact the consumer directly and can deal with the debt counsellor only, and vice versa.
5.
You will be able to afford your basic living expenses again.
6.
Your assets and credit accounts will be protected against legal action.
7.
Once you’re done with the process, you will be debt-free and credit-worthy again.
8.
The credit life insurance premiums are more affordable.
HELP! I'M OVER-INDEBTED!
BECOME DEBT FREE TODAY...Contact Cure Debt today to assist you with all your financial difficulties and start living again. Disclaimer: This article is for informational purposes only and does not constitute legal advice. Call on Cure Debt rather than relying on the information herein to make any decisions. The information is relevant to the date of publication.