Debt review is a formal process and it will affect your credit rating, but sometimes is the best remedy for you. Here is the way it operates for you to consider. A method to review your obligations towards those you owe. A personal should evaluation his debts every 3 to 6 months on his own to see where or what creditors he can settle first or soonest. Debt review was implemented by the government in 2007 to assist consumers that find they over-indebted. Other reasons for this were due to the increase of written off or bad debt, creditors proceeding with garnishee orders against customers incomes, repossessions. Also to assist lenders to collect debt owed to them and not writing it off as bad debt.
What is over-indebted?
A person that has debt, and cannot a services his monthly obligations towards his creditors as per the unique agreement. There are many factors why this can occur.
Reason for over- indebtedness:
Ø Job loss
Ø Over spending
Ø Interest rate hikes
Ø Increase in household expenses
How does the process work?
A consumer will approach a Debt Counsellor to assist with finding a solution through the process. A debt counselor is a person that meets the requirements set out by the National Credit Regulator “NCR” that has completed the Debt Counseling course and has registered with the “ NCR”. The NCR regulates all debt counselors. Through this process the Debt counselor will determent if the consumer is over-indebted.
Ø Customers can compensate their debt at a diminish installment
Ø Credit providers cannot take any authorized action against consumers.
Ø Consumers cannot obtain new debt
Ø Interest can be negotiating with credit providers.
Ø Advantage of their income for household expenses.
As still, the important thing is to take good advice and Debt review your options carefully with an expert in the area of debt. So call Pay Plan Solution right now- and deal with your debt problem…