Because life and all the essentials required to live it are incredibly expensive, leaving many people with overwhelming financial burdens, it is important to have an understanding of the debt review process. It could save your financial life and allow you a future to enjoy.
In most cases cars, homes, cell phones, store accounts and many other things require loans. These loans add up and accumulate to a cripplingly high amount and with everyday expenses on top of them, your debt could get out of hand very quickly. All it takes is for you or your partner to get retrenched, the interest rate to shoot up a little higher than you thought or a sudden expense like a hospital bill to bury you in a mountain of debt.
Any of the above could happen to any of us in todays unpredictable, fast changing world. If you are in over your head you should take action NOW by reaching out to a financial consultant and applying for the debt review process. The alternative could be legal action taken against you.
What happens if I don’t pay my loans?
A financial service provider like a bank is a business with one very important concern: protecting and growing its money. You cannot expect leniency from your bank if your payments fall behind. They will take action with very little warning and you could find yourself losing all your material goods and perhaps even paying a fine or doing jail time. It is simply not worth it to sit idle, wringing your hands in worry as the warning letters pile up in your post box. The debt review process can help YOU to handle your debt without the worry of penalties.
What is debt review?
The debt review process involves a debt counsellor negotiating with your creditors to work out a payment scheme that you can afford. It became possible through the 2007 National Credit Act.
What are the benefits?
There are many short term and long benefits of debt counselling and the debt review process. The advantages include the following:
- You will receive immediate peace of mind knowing that you have a trained professional on your side to help you deal with your debt.
- Your debt counsellor will make sure that you still have the money for your living costs like rent, lights and water, food, petrol etc. while you are paying your debt.
- Your debt counsellor will ensure that you pay a manageable amount to your creditors each month.
- By applying for the debt review process, you will be likely to avoid legal action as it shows creditors that you are making an effort to pay your debt and not just evading payments.
- The entire amount might, through negotiations between your counsellor and your creditors, be lessened.
- You are likely to learn the skills needed to manage your money better in the future.
How to apply
Applications generally take five days. You must inform all your creditors that you are applying for debt review using the relevant documents. Once you have been accepted for debt review, your debt counsellor will have 60 days to negotiate with your creditors.
Who qualifies for debt review?
You qualify for debt review if you have an income which will cover a payment to your creditors and your essential living costs.
If you are struggling with debt, do not battle onwards alone. Now that you have an understanding of the debt review process contact a debt counsellor to take the first step to managing your money and taking control of your life.
Do it NOW, because once you receive a court summons from you creditors it is too late for the debt review process to help you. Your window of opportunity is small, act now and let a trained professional help you to gain some peace of mind.