The ABCs of debt review
If you are new to debt review, the process can seem daunting we know. Where do you start? And how does it all work? At Libertine Consultants, we know that it can all be a bit much. This is why we've decided to share the gist of what you need to know right here.
What exactly is debt review/debt counselling?
Debt review, also referred to as debt counselling, is a form of debt rehabilitation that allows a consumer to settle his/her debt obligations and get on an even keel with their creditors with the help of an accredited debt counsellor and a payment agency.
Do I qualify for debt counselling?
Are you unable to make all of the monthly instalments required by your creditors? If your answer is yes, you quality for debt counselling. Please note that juristic persons (i.e. companies) are not eligible for debt review. Only private individuals (i.e. living, breathing humans) quality for this support.
YOUR STEP-BY-STEP GUIDE TO DEBT REVIEW
Consult a debt counsellor, e.g. a member of the Libertine Consultants team. The debt counsellor assists you to create a new monthly budget that considers all your basic needs, e.g. rent, food, electricity, school fees, etc. The debt counsellor reaches out to your credit providers to get all the information on your existing debts. Together, you draw up a new repayment plan, and send it to your creditors. Your credit providers agree to the repayment plan, or make a counter proposal. You start to pay your new reduced monthly amount via a PDA <what does this stand for?> Court documents are created on your behalf including your repayment plan and the responses from your creditors. You sign a confirmation affidavit for the court. The court considers the plan, along with the responses from your creditors, and creates a court order. You continue to pay the restructured amount every month. The PDA provides statements to this effect on your behalf. Once smaller debts are paid off, the funds that become available are put towards bigger debts. Once all your debt is settled in this systematic way, you are free to leave debt review. You will be issued with a clearance certificate and all the relevant credit bureaux will be notified. At this point, you will be eligible for credit again, if you see fit.
Still have a few questions about the process?
This is the short and sweet explanation of what debt review is and how it works. If you have any further questions about this process, please feel free to reach out to a member of the Libertine Consultants team. Remember, this is what we do every day; our team will be able to provide you with good advice.
Best of all - if you contact us before the end of August 2021, you can take advantage of discounted rates on our credit clearance services. New clients get 15% off, and existing clients get 5% off their full outstanding balance. We are also offering family mediation sessions at a discounted rate of R500 per hour, so bear that in mind if you or any of your friends or family members could benefit from this offer. Need legal advice? We can assist with that too! Submit your legal inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward.
