Five easy steps to apply for debt review

Debt Review is the process of entrusting your debt negotiations to an independent Debt Counsellor who will gather your debts, examine your income and, together with you, devise a payment plan for the instalments and interest you can afford to pay to creditors.

Your independent Debt Counsellor will then represent your interests in negotiations with each of your creditors. Debt Review reduces your debt while protecting you from asset repossession, legal action, and harassing phone calls from your creditors.

Here is how you can apply for debt review in 5 easy steps.

1.    Start with a debt assessment

Step one of the debt review process is an evaluation of your financial resources. To begin with, fill out an online debt assessment form with your Debt Counsellor and tell them about your financial status so that they can begin to formulate a debt restructuring plan.

The team of Debt Counsellors will conduct an initial examination to determine whether or not you are too indebted.

2.    Notify your credit providers that you are undergoing debt review

To verify your debt, your Debt Counsellor will send a Form 17.1 to each of your credit card companies and credit reporting agencies.

In the eyes of the credit bureaus, you will be listed as a being under debt counselling. Until such time as you have fully obligated your debts, or received a Clearance Certificate, your name will remain on this list.

As part of this step, your debt counselling agency will provide your interim repayment plan. As outlined in the interim repayment plan, you must begin making payments immediately.

3.    A notice of over-indebtedness is sent

In order to begin the interim repayment plan, debit orders for debt payback must be cancelled at this point. This will allow for the debt counsellor to notify your creditors and credit bureaus that you are over-indebted by issuing a Form 17.2.

To cancel your original credit arrangement, you will sign and submit a Debit Order cancellation form to your credit providers. You will then begin making fresh payments in accordance with your interim repayment plan.

4.    Finalisation of the repayment plan

The details of your loan repayment will be finalised. Debt Counsellors can then submit your repayment plan for approval to the PDA.

All your Credit Providers will receive a single payment from your PDA. Every month, you’ll get an SMS with a reminder. At this time, your application for Debt Counselling Court can be completed.

An Affidavit will be required of you. The law is on your side, so don’t be hesitant to go through with it. Your Debt Counsellors are there to help you every step of the way. The Affidavit must be signed and payments must be made in accordance with the schedule.

5.    Court approval is obtained

Your Debt Counsellor will secure a court date on your behalf. The goal is to have the suggested Debt Counselling plan approved by the Court. If you pay your bills on time, you’re safe. Your Debt Counsellor will keep an eye on the process and give you guidance as needed.

Your Debt Counsellor should be contacted for any questions regarding your payments or the status of your account.

Payment arrangements will be confirmed by the court’s ruling. Maintaining a regular payment schedule is essential for your financial well-being, and you can follow the specially restructured repayment plan until your debts are obligated in full.

Also Read: How to get on top of your finances before a recession hits