What does a debt review counsellor do?
A debt review counsellor, performs the same duties as a registered debt counsellor. In fact, they are one and the same thing.
Whatever you call them, they are (through the National Credit Act) responsible for placing you under debt review.
What does it mean to be under debt review?
- You will be able to afford your monthly debt repayments as well as your everyday living expenses.
- You will have one lower monthly debt instalment (which covers all your debt).
- Your assets will be safe from repossession (if no legal action has been taken before your debt review application).
- You will have peace of mind and be able to focus other aspects of your life, besides your debt.
- You will eventually pay off your debt and start on your journey towards financial freedom.
In order for the above to happen – your debt review counsellor will have to:
- Inform all your credit providers (retail store cards, personal loans, credit cards, vehicle finance, home loans etc) as well as the credit bureaus that you have applied for debt review.
- They will do this by means of a form 17.1.
- Request certificate of balances from your creditors.
- Your creditors will return COB’s to your debt review counsellor –which gives details of all your accounts, including your remaining terms, interest rates and outstanding balances.
- Upon receipt of all the COB’s from relevant credit providers your debt review counsellor will then be able to see if you are over-indebted (not able to keep up with your everyday living expenses and meet your debt repayments on time).
- If this is found to be the case, they will inform your creditors via a form 17.2.
- Your debt review counsellor will now use all the information at their disposal (including the COB’s) to draft a reasonable repayment proposal that will suit your budget –and this will then be sent to your creditors.
- Once your creditor accepts this restructured repayment proposal, it will be made and order of court.
All you now have to do is make your one monthly payment on time until you are debt-free.
For more information on what a debt review counsellor does, please contact NDA today.