Missing a monthly repayment under debt review has various consequences. It’s essential to rectify it promptly to maintain the benefits of debt review. If you miss a monthly payment, credit providers may terminate the plan and institute legal proceedings. To avoid this, it is important that you disclose your complete situation so that your debt counsellor can work out an affordable and realistic debt repayment plan. Should there be any change in circumstance, you should notify your consultant.
Here's a breakdown of what happens and what you should do if you miss a monthly repayment.
Communication with Debt Counsellor
Inform your debt counsellor as early as possible when you realise that you might miss a payment. At the very latest, you should notify them immediately after you miss a payment. Your debt counsellor can provide guidance on how to manage the situation and communicate with creditors on your behalf.
Potential Consequences
Missing a payment can compromise the legal protection afforded by debt review, potentially exposing you to legal actions from creditors. Creditors may opt to terminate your debt review status, seeking alternative means to recover the owed amounts.
How to Rectify a Missed Payment
Discuss the possibility of rescheduling payments with your debt counsellor to maintain adherence to the debt review process. Your debt counsellor may review your budget and repayment plan, making the necessary adjustments to accommodate any changes in your financial situation.
Staying Compliant
Demonstrate a commitment to adhering to the revised repayment schedule, ensuring future payments are made as agreed. Maintain open lines of communication with your debt counsellor, keeping them informed of any financial changes or challenges.
Missing a payment under debt review is a serious matter, but with immediate action and the guidance of a debt counsellor, it is possible to navigate this challenges and maintain your progress towards financial rehabilitation.