People often ask us what it means to be under debt review. We have simplified exactly what it means to be under debt review in five simple points.
- You will be protected from creditors taking legal action against you
- Your debt repayments will be consolidated into one simple monthly repayment by a Payment Distribution Agency (PDA)
- You will pay lower monthly instalments
- Your assets are protected from repossession
- You will be well on your way to becoming debt free
When people ask us what it means to be under debt review, we always explain to them that the main purpose of debt review is to ensure that you can afford to make your debt repayments and cover your basic living expenses, without struggling financially.
The fact that it’s a legal process governed by the National Credit Act (NCA) and regulated by the National Credit Regulator (NCR) makes it safer than other debt solutions such as debt consolidation and payday loans to name but a few. The NCA was designed to protect consumers and uphold their rights, so creditors, debt collectors and debt counsellors don’t take advantage of vulnerable consumers. This is why you must ensure that you approach a debt counsellor who is registered with NCR, such as National Debt Advisors (NDA) to get the best result.
So when asked what does it mean to be under debt review, it means that you get financial protection and financial relief. How your debt counsellor gets these things for you is by negotiating a restructured repayment plan with your creditors.
In this repayment plan, your debt counsellor will propose that your creditors reduce your instalments and interest rates, and extend your repayment term. In this way, you will be able to afford your debt repayments and have enough income left over to survive on.
Your creditors will likely accept these new terms, as their main objective is to be repaid. With each passing month, you will get closer to becoming completely debt free.
If you’re struggling to make ends meet, contact us or submit your details through our contact details and one of our expert consultants will assist you with debt advice and help you to save money every month.