The debt review process is fairly simple – all the consumer has to do is allow the debt counsellor to work for and with them to help them regain control of their debts. From A to B the debt review process is designed to make the being over-indebted easier to handle and to protect the consumer.
Upon the first meeting with a debt counsellor, a consumer should have all the relevant documentation such as bank statements, ID documents and bills available. This will enable the debt review expert to easily analyse the budget of the consumer and identify creditors that can be contacted. It is important to note that before a debt review expert sees these documents, the consumer should make sure that they are registered with the NCR and has obtained all the necessary qualifications to become a debt review expert.
Once debt review has been applied for, the debt review expert will create a new budget for the consumer. This budget will allocate funds to necessary living expenses and debts. However the debt payments will be lessened due to the fact that the debt review process involves negotiating with creditors in order to reduce payments and interests rates.
Once these negotiations have been approved, the next step in the debt review process is to find a payment distribution agency who will handle these payments, including paying the allocated amount for living expenses to the consumer.
After all this, the debt review process just entails patience on the part of the consumer. Thy need to sit back and let the payments go through, and as debts are paid up enjoy watching their debt problems disappear.
Article written by: Andrea van Tonder 06-2013