Frequently Asked Questions about Debt Review.
What you need to know about debt review
Something called debt counseling could be your best option if you are looking for a way out of mountains of debt that can't seem to be repaid. Debt counseling is regulated by the NCR (National Credit Regulator) and it's also referred to as debt review. This means that you'll be able to ask for help from either one or both processes, depending on your circumstances.
Of course, no one should be ignorant about how to manage their own finances. One should always put down money into a savings account or invest in something that will eventually earn an income. Also, it’s best to have multiple sources of income.
What is debt review?
Debt review is a programme that enables consumers who are unable to make their monthly payments to negotiate with creditors for a simpler repayment schedule or lower interest rate depending on the reason for their hardship. To do this, you first need to contact a debt counselor, so they can represent your interests on your behalf once contact is made with creditors.
Will I be blacklisted if I am under debt review?
If you are under pending debt, your creditors cannot “blacklist” you. If, however, you still have outstanding debts that have not been well managed before you enter debt review, these may be listed on your credit report. This is why it’s important to seek help earlier than later when it comes to your money troubles.
How does debt review affect my credit record?
If you find yourself frustrated and under stress every time you see your bank account getting smaller than it was, there’s a way out. Debt review is one of the options you may want to consider when seeking solutions for better management of your financial responsibilities.
How long does debt review last?
As everyone’s debt review plan is different, it takes a different amount of time to complete. Factors that affect how long one spends in debt review include: How much debt you have, and how much money you can afford to repay monthly. Your debt counselor will negotiate a repayment schedule with your creditors based on the information provided by you and your financial situation. The more money that goes towards your debts each month, the faster you can get out of debt review and move on with your life. The more dedicated and committed you are, the sooner you're going to be able to leave this phase of debt help behind!
When can I take out credit again?
Once you have completed the credit review process, and upon receiving your clearance certificate from your credit counsellor, the next thing to do is notify the credit bureaus that you no longer have any outstanding debt. The regulations surrounding debt review can protect you as long as you let your credit counsellor know immediately of any debts that are reactivated with a new creditor/company.
Debt review is a popular way to wipe out your debt in a single process. It’s a faster and easier way to get a fresh start. It’s also better for your credit score, because it can help you pay off debts all at once. Contact Credit Health for advice on how to start the debt review process.