What is debt review? How does it work? What should I expect from my credit score after a debt review?
Discover all there is to know about debt review, including what happens, how it works, and the procedures you must follow.
After reviewing your credit report we will provide you with a detailed analysis of your financial situation. We will also explain the steps you can take to reduce your monthly debt repayments, negotiate with your creditors, the legal process involved and how to improve your credit score.
The concept behind debt review is simple – it helps you identify where you are spending money and how much you spend each month. This information allows you to work out what you need to do to reduce your monthly expenditure and pay off your debts faster.
Do you need debt relief?
If you’re having trouble making your debt payments, debt review may be the best option to help you manage your bills.
Debt Review Process Simplified
We will register you with NCR (National Credit Regulator) through a very straightforward and fast process, which instantly protects your assets and you from anyone you owe money to, which includes banks. Your untouchability will prevent any creditors from getting in touch with you. And during that period of time, we will assist you in rebuilding your funds so that you can proceed and resume enjoying life.
Do you require debt relief? That’s great since we can assist you in rebuilding your life, credit and paying off your debt faster while stopping your creditors in their tracks. Fill in the form below and we will call you back.
What Is The Purpose Of Debt Review?
To help a consumer who is already over-indebted or a customer who is not yet over-indebted but is having trouble completing all of their commitments under their credit agreements on time. The debt counselor will evaluate the client’s financial situation and way of life before making recommendations to lessen debt.
The customer must acknowledge that this is a voluntary, mutually beneficial process that ends with the Tribunal or Magistrate’s Court rearranging the consumer’s financial obligations. The consumer’s commitment to following the re-arrangement plan and forgoing the execution of any further credit agreements outside of consolidation agreements is crucial to the process’ success. The consumer must be aware that debt counseling or debt review does not relieve them of their obligation to pay back the money they owe to credit card companies.
Debt Review Benefits For You
For all of your debt, make a single, more manageable monthly payment. Reduced interest rates with all debtors and reduced installment payments.
- You don’t have to deal with your creditors directly since we do.
- You will no longer be pestered by creditors for payment.
- A goal of the structured repayment plan with exit date.
- You’ll have enough cash on hand to cover your living costs.
- Your assets will be shielded from repossession.
How does debt review work?
Here are the 8 easy steps:
- We assess your financial standing and determine your debt profile.
- Putting everything in order for a formal evaluation.
- We contact your creditors to request confirmation and negotiate a payback schedule with you.
- We add your information to the NCR Debt Help database of the National Credit Bureau.
- NCR tells the credit reporting agencies that you have requested a debt review.
- In order to confirm a repayment arrangement, we engage with each creditor.
- We make your creditors aware. We will inform your creditors of your request for a debt review, at which point you will be instantly protected by the National Credit Act.
- You begin making debt payments while feeling at ease. You pay only ONE reduced monthly installment. An authorized PDA (Payment Distribution Authority) receives your one simple monthly payment and distributes the money
To have the restructured repayment plan made into a court order, our panel of attorneys submits an application to the Magistrates Court on your behalf.
Debt review steps
Step 1: Calculate how much you could save each month with our free Debt Review calculator before you formally file for debt review.
Step 2: After we’ve looked at the fundamentals, your preferred debt counselor will send you a formal application (called Form 16); this gathers all of your personal information, income, expenses, creditor information, and debt information, including bond accounts, vehicle finance agreements, loan agreements, clothing accounts, and past-due medical bills.
Step 3: Given that the majority of people have never sought debt review assistance, we are going into great depth here so that you are fully aware of what to anticipate. We will send a notice to your creditors (known as Form 17.1) after you have signed the Form 16. This notice tells your creditors that you have requested a debt review and that a review of your finances is now taking place. Additionally, it requires that your creditors send a Certificate of Balance to your debt counselor (COB).
How much will debt review cost you?
Since we follow the NCR Fee Guidelines, the Debt Review fees are set by the National Credit Regulator, so you won’t be charged more or less.
The PDA pays this fee to us, thus it is all a part of the process. The PDA will begin paying your creditors after this has been paid. This will be reflected in the payment schedule that was sent to your creditors as part of your debt restructuring. It is not seen as a default in payment to creditors while you are paying the Debt Review fees because the procedure is industry standard.
Where does your money go?
Once the Debt Review fees have been paid the PDA will make payments to your credit companies in accordance with the payment arrangement that has been made to them. The PDA keeps track of all payments and unpaid balances, which will appear on your monthly statements sent to you through email and keep you informed at every stage.
Meeting with a Debt Counsellor
The NCR-registered debt counselor will want to learn as much as they can about your consumer’s debts and other financial circumstances (so take your statements with you). Most debt counsellors will provide you free guidance . If you want to enter debt review they should (in accordance with the Consumer Protection Act) require you to sign a contract outlining what they will and won’t do. Ask for one if they don’t if you want one.
Although this is distinct from the Form 16, some astute Debt Counselors are combining the two forms in an effort to save time. Look for the NCR sticker on the door or window and the NCR Registration Certificate on the wall when you visit the debt counselor and/or on their website. Ask to see these if you don’t already have access to them.
You can see that they are a respectable debt counselling business thanks to this. Our NCR number is clearly shown on our site. Call us now and we will call you back or simply fill in the contact form and our website and we will call you back.
The consequences of being placed under debt review
What are the consequences of going under debt review?
Within the first 60 (sixty) business days of the consumer’s request for a debt review, the credit providers are not permitted to take legal action against the customer to enforce the terms of the credit agreement.
While under debt review, the consumer is prohibited from taking on new debt, and all registered credit bureaus will note that the customer has requested a debt review.
is responsible for paying any fees that a debt counselor, lawyer, or PDA may impose.
The ultimate goal is to pay off all short-term debts owed to creditors and to demonstrate future ability to repay mortgages, thus the consumer must abide by any modified repayment instructions issued by the Magistrate’s Court or the Tribunal.
Only before the debt counsellor has issued the declaration of over-indebtedness (Form 17.2) can a consumer who has applied for debt review withdraw from debt review. A consumer will also be removed from debt review if they have received a clearance certificate or a court judgment stating that they are no longer over-indebted and not subject to debt review.
Frequently Asked Questions
1. Is Debt Review a Good Idea?
When all of your debt is paid off, you’ll have mental serenity in addition to financial tranquility. You will be eligible for the greatest financial products if you have a high credit score with the credit bureaus.
Additionally, you’ll save a ton of money. One of the reasons it’s so difficult to get out of debt without help is because of monthly interest payments. The debt remains unchanged, but the minimum payments pay off monthly interest costs.
Your debt counselor could be able to lower the present interest rate you’re paying. The sooner you pay off the debt, the lower the interest rate will be.
It is simpler to make a single fixed monthly payment than to attempt to meet the minimum payment criteria of numerous loans and credit cards. Additionally, you won’t face legal action and your assets will be secure.
Through debt counseling, you are shielded from debt collectors and attorneys as well as the posting of bad information about you by credit reporting organizations. Your counselor will seek a judicial or consent order to forbid any form of debt-related harassment.
2. What does it mean to be under debt review?
Being under debt review means you have a debt counselor who has reviewed your income and expenses and determined that you are over-indebted and under debt stress if you are under debt review.
Your creditors and the credit bureaus would have been notified, and a temporary repayment schedule would have been created by the debt counselor. Your monthly loan repayments could be cut in half with this strategy.
The interest rates on unsecured loans have also decreased. A registered payment distribution agency (PDA), which handles all payments to your creditors on behalf of the debt counselor, would receive this plan before submitting it to them.
You cannot be sued for the debts that are under review once your creditors accept the amended repayment plan.
Your debt counselor will present you with a clearance certificate once all of your debts have been paid off, and they will let the credit bureaus know that you are no longer receiving debt counseling services.
3. Why should I go under debt review?
The debt review procedure entails lowering the number of your monthly payments so you can manage them while still paying for your basic needs.
Due to the process, you will only have one payment due each month, and the PDA will make payments to creditors in accordance with the established plan.
You are shielded from losing your possessions and assets by debt review.
You no longer need to avoid your creditors’ calls because your debt counselor will handle all of them.
At the conclusion, you receive a certificate of clearance and a fresh start.