Will interest be charged if I am under debt review?
A consumer posed the following question: “ Will interest be charged on my outstanding balances when I go under debt review?’
National Debt Advisors CEO, Sebastien Alexanderson responded as follows:
People who have fallen behind with their debt repayments, often feel like they are spiraling out of control. At this point, most payments made will see a large portion going towards interest and admin fees – with hardly a dent being made in the capital amount owed.
It is at this point in the consumer’s journey, where a debt counsellor can have most impact. For the best results, the consumer and the debt counsellor need to work together, so that the debt counsellor can restructure a new debt payment plan – which is affordable to the consumer, but acceptable to the creditor as well.
Through the National Credit Act, as debt counsellors we have tools at our disposal which allows us to negotiate with your creditors for extended credit terms, reduced interest rates and an overall lower, consolidated monthly debt repayment. Depending on the debt and the creditor, we may even be able to freeze completely, any interest and further charges on your accounts. Once you choose the debt relief option of debt review, you no longer need to have any payment negotiations with your creditor. Your registered debt counsellor will act on your behalf.
Negotiating new payment plans can be tricky. Good, lasting payment plans are usually created, accepted by the creditors and made an order of the court – when you have a credible, knowledgeable debt counsellor. Such a debt counsellor will be registered with the National Credit Regulator, have good relationships with creditors – and have easy access to their debt review departments. It is also vitally important that your debt counsellor has sound knowledge of the rules and regulations of the NCA, and the industry.
Even if your credit terms have been extended and your interest rates lowered or frozen under debt review – it is important to note that the more money you are able to pay on your outstanding debt – the sooner you will become debt free.
We have been voted SA’s number one debt counselling company. If you are struggling to pay your bills and/ or have any questions regarding debt review, please fill in our contact form and one of our agents will contact you soon.