If you find yourself in a situation where you are overburdened by financial commitments beyond what you can bear, contract the services of a registered debt counselling agency. A debt counsellor will negotiate new terms with the lenders for you in the process known as debt review for an amount of fee.
To determine if you qualify for this process, the counsellor will make an inquiry and establish whether you have a genuine case of over-indebtedness. A typical case is when your monthly earnings cannot adequately service your borrowings.
If the agency feels that you are genuinely over-indebted, your creditors will be given notice of your registration. The counsellor will also hold discussions with each of your creditors to come up with affordable terms for the repayment of the monies you owe. When all your creditors agree to the restructured terms then you will obtain a consent order from court witnessing the agreement.
However, one or more of your lenders may refuse to accept the new terms and in that case lay down a new deal. You can either accept the new offer from the lender or have the case go to the tribunal to decide the just course of action.
If the restructured terms are established, your burden becomes lighter and you find a new motivation to repay the borrowings. From then on, a single debit order from your bank account covers the monthly instalments payable to all your creditors thus reducing the task of handling numerous transactions.
When you are observing the new terms, the creditors cannot pester you or even sue you successfully because of the fact that you are in a financial crisis. Once you have paid off all your creditors you will be issued with a clearance certificate and the best thing about debt review is that your name cannot be blacklisted for receiving the service.
To determine if you qualify for this process, the counsellor will make an inquiry and establish whether you have a genuine case of over-indebtedness. A typical case is when your monthly earnings cannot adequately service your borrowings.
If the agency feels that you are genuinely over-indebted, your creditors will be given notice of your registration. The counsellor will also hold discussions with each of your creditors to come up with affordable terms for the repayment of the monies you owe. When all your creditors agree to the restructured terms then you will obtain a consent order from court witnessing the agreement.
However, one or more of your lenders may refuse to accept the new terms and in that case lay down a new deal. You can either accept the new offer from the lender or have the case go to the tribunal to decide the just course of action.
If the restructured terms are established, your burden becomes lighter and you find a new motivation to repay the borrowings. From then on, a single debit order from your bank account covers the monthly instalments payable to all your creditors thus reducing the task of handling numerous transactions.
When you are observing the new terms, the creditors cannot pester you or even sue you successfully because of the fact that you are in a financial crisis. Once you have paid off all your creditors you will be issued with a clearance certificate and the best thing about debt review is that your name cannot be blacklisted for receiving the service.
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Feeling overwhelmed by your current financial situation? Discover how the debt review process works and the advantages of debt counseling at http://www.debtreviewsolutions.co.za now!
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