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.
Such a counsellor will receive your application and carry out an investigation to determine if you actually qualify for the process. To qualify, your monthly obligations have to surpass your net income or be at a level where you cannot practically survive.
If your situation is ascertained, the counsellor informs your creditors of your registration for the review process. The counsellor will have to make arrangements with all of them and try to convince them to accept new repayment terms since you cannot afford the existing repayment regime. Should everyone come to a consensus, a consent order is obtained from court to close the agreement.
In the unfortunate event that one or more of your creditors decline your offer, they can make a counter-offer and if your counsellor advises you to accept you should go ahead. Should the terms be very unfavorable, you can decline and the case can be settled once and for all in a court of law.
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.
During the review process a creditor cannot harass you or threaten legal action unless you fail to comply with the new agreement witnessed by a court of law. If you are diligent to settle your financial commitments you will get a clearance certificate and there will be no adverse listing in the Consumer Bureau Database.
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!