A: For the Debt Review (note – a legal) process to be successful, you must adhere to your Debt Review restructured or repayment plan (‘rehab payment’) at all times so that your Debt Review agreement doesn’t get jeopardised.
Debt Review’s primary benefit is the negotiation process offered (with your various creditors on your behalf) to reduce your monthly instalments and interest rates.
You may ask: ‘What’s the worst thing then that can happen if I don’t pay my monthly Debt Review repayment amount?’
If you fail to make payment in no uncertain terms, you are taking a step back and further away from reaching financial freedom again. Your creditors will have sufficient legal grounds to terminate your Debt Review and commence legal action against you. REMEMBER: The Debt Review process is NOT a payment holiday but instead offers you a lifeline to afford your daily living expenses while also taking care of your debt responsibilities and avoiding repossession of your assets.
**Very important: if your payments are in arrears, no further work will be done on your Debt Review application until payments are 100% up to date.
Rather pay something than nothing. And, when you find yourself in circumstances where you see you might have trouble paying your upcoming instalment amount, you have to contact one of DebtSafe’s registered Debt Counsellors immediately to re-negotiate and make arrangements with your creditors.
Also, take a look at the policies that you have available. You may not even be aware that you have credit-linked or life insurance that will help pay your debt after unforeseen events, for example, a salary deduction or loss of income, have taken place.
Did you know?
DebtSafe offers extra benefits for their Debt Review clients. In partnership with CreditGuard Credit Life Insurance, DebtSafe can ensure that your debt gets paid when you can’t. Learn more here
Lastly, before entering into the Debt Review/Debt Counselling/No-loan Debt Consolidation process, you have to be sure that you understand what the process entails and how it works. Always make an informed decision to give yourself and your household or family members a chance at a sound financial future.
**Alternatively, request a free call-back from one of DebtSafe’s professional representatives to explain all you need to know about Debt Review and the payment procedures involved.