So, you’ve heard about debt review but you aren’t sure this is for you? If you’re struggling to
make ends meet and try avoid end-of-the-month phone calls from your creditors, perhaps
you need to rethink your position. A large percentage of our country is considered over-
indebted. This means that they have so much debt that they aren’t able to pay their
financial obligations as stipulated in the agreed financial agreement.
What to do?
In today’s current economic climate, making monthly payments on loans, credit cards and
store cards can feel next to impossible. Despite this, you are obliged to pay what you owe. If
you are over-indebted due to a job loss, for example, you can apply for debt review. This can
be a lifeline for those who are at their wits end regarding their payment obligations.
What is it?
Debt review is a legal process that is designed to assist those who are over-indebted. A debt
counsellor will speak to your creditors on your behalf in order to arrange a new payment
schedule, which in turn will reduce your monthly instalments to a more manageable
How does it work?
Once you have met with the debt counsellor, he’ll determine that you are in fact over-
indebted. He will then speak to all the companies that you owe money to, in other words, all
your creditors. These include your store cards, and any other loans you have taken out or
hire-purchase agreements. The debt counsellor will approach your creditors on your behalf
and discuss a new repayment plan. Once a new repayment plan has been negotiated, you
only need to pay one amount every month to the payment distribution agency that will then
pay your creditors on your behalf.
How you will benefit
- The first important benefit is that you will gain peace of mind.
- You’ll be able to meet your obligations and still afford to live.
- You will also be protected from creditors taking legal action against you.
- The monthly instalments you pay will be less.
- All your assets are protected from being repossessed.
- And the final benefit, and as important, is that you are on the road to becoming debt-free.
Debt review is not a mark against you. Instead, it is a responsible decision towards meeting
your obligations and becoming debt-free.
For more details on how to begin your debt-free life, speak to One Debt today.