Debt review counsellor
Debt review counsellors place you under debt review
If you are skipping debt payments, don’t have enough money for necessities or drowning in debt – then you should see a debt review counsellor as soon as possible.
The process of debt review is regulated by the National Credit Regulator, and only a registered debt review counsellor, also known as a registered debt counsellor can place an over-indebted consumer under debt review.
This is the process of debt review:
- When you contact NDA, one of our highly competent debt advisors will assess whether you are over-indebted or whether or not you creditors were reckless in granting you credit. They will have 30 business days from the date of your application, to make this determination.
- Within five business days of accepting your application for debt counselling, the debt review counsellor must inform all your creditors and the credit bureaus of your application.
- Your debt review counsellor will draw up a repayment plan so that you can continue to pay your creditors in the interim.
- During the first 60 business days from the date of the application of your debt review process, no legal action may be taken against you in respect of debts that are “under review”. This means that if the credit provider has not already proceeded with legal action against you, you have two months in which to negotiate a payment arrangement. However, if the creditors have already begun taking action against you, you unfortunately do not enjoy this protection and those debts must be excluded from your debt review.
- If you are deemed to be over-indebted, your debt review counsellor will draw up a repayment plan to rearrange your debt obligations in line with what you can realistically afford. If the credit providers accept the repayment plan, then the PDA will channel your revised payments to your creditors. You will make these payments directly to the PDA as it is their responsibility for providing monthly statements to you and payments schedules to your debt counsellor and creditors, as well as attending to queries from respective parties.
- Once all of your debts have been paid, your debt review counsellor will issue you with a clearance certificate and will notify the credit bureaus that you are no longer in debt counselling. Your record will then be cleared of whatever debts were under debt review. This may exclude your home loan, as the term for unsecured debts is much shorter than that of a home loan.
Don’t delay. If you are feeling financially stressed – contact NDA today.