by Datesh 
Debt review is a process that aims to help individuals who are struggling with debt by offering a structured repayment plan that is affordable and manageable. If you are considering debt review, it is essential to understand how the process works. In this article, we will provide you with a step-by-step guide on how debt review works.
Step 1: Seek the Services of a Debt Counsellor
The first step towards debt review is to find a debt counsellor who will assess your financial situation and advise you on the best way forward. A debt counsellor is a registered professional who will review your debts, income, and expenses to determine if you qualify for debt review.
Step 2: Application for Debt Review
Once the debt counsellor has assessed your financial situation and determined that you qualify for debt review, they will help you complete an application form for debt review. The application form includes details about your debts, income, and expenses.
Step 3: Debt Counsellor Notification of Credit Providers
After submitting the application for debt review, the debt counsellor will notify all your credit providers that you have applied for debt review. Once they have been notified, your credit providers cannot take legal action against you or contact you directly to collect any debts.
Step 4: Debt Counsellor Proposal to Credit Providers
The debt counsellor will negotiate with your credit providers on your behalf to develop a repayment plan that is affordable for you. The repayment plan will be based on your current income and expenses and will consider all your debts. The debt counsellor will present the repayment plan to your credit providers for approval.
Step 5: Credit Providers’ Response
Once your credit providers have received the repayment plan proposed by the debt counsellor, they will either accept or reject the plan. If they reject the plan, the debt counsellor will negotiate a new plan with your credit providers until an agreement is reached.
Step 6: Payment Distribution
If the credit providers accept the repayment plan, the debt counsellor will arrange for a payment distribution plan. This means that you will make one monthly payment to the debt counsellor, who will distribute the funds to your credit providers according to the repayment plan.
Step 7: Debt Review Period
The debt review period is the time during which you will be making repayments according to the agreed repayment plan. During this period, your credit providers cannot take legal action against you, and they cannot contact you directly to collect any debts. The debt review period usually lasts between three to five years, depending on your financial situation.
Step 8: Debt Review Clearance
Once you have completed the repayment plan, the debt counsellor will issue a clearance certificate. The clearance certificate serves as proof that you have settled all your debts according to the agreed repayment plan. You can then use the clearance certificate to have any negative information related to your debt review removed from your credit report.
In conclusion, debt review is an effective way to manage debt for those who are struggling financially. By following the above steps, you can get the help you need to overcome your debt problems and achieve financial stability. If you are struggling with debt, don’t hesitate to seek the services of a debt counsellor and take the first step towards a debt-free future.
