Debt review is a simple process to give you a fresh start, debt-free. But what does the process involve, from your perspective? Below, we unpack how to start debt review, what happens under debt review, and how you can exit debt review. If you choose Debt Sage to guide you, we’ll be with you every step of the way.
The debt review consultation over the phone takes 15-30 minutes. First, your NCR-registered debt counsellor will ask some basic information to get to know you better. Next, you and your debt counsellor will review your financial situation and your credit report, which your counsellor will pull for you on the call. Your debt counsellor will discuss options available to you based on your income, expenses, and your debt. They’ll help you figure out what you’re able to pay comfortably towards your debt every month, taking into account your household budget. Next, your debt counsellor will suggest a new debt management plan. You will leave the session with an actionable plan to conquer your debt and a sigh of relief!
Questions your debt counsellor will ask:
What you need:
Your debt counsellor will send your new debt management plan to your creditors. They will help you to officially place yourself under debt review through a court order. They will then negotiate discounted debt settlement, lower interest rates, and debt restructuring that allows you to make one single payment. Once you start debt review, you are legally protected. Late payment fees are removed and you will stop receiving collection calls. You will not be able to take out new credit while on debt review.
What you need:
Your interest rates will be lowered, your debts will be consolidated into one smaller monthly payment, and you’ll pay off your debt faster than without debt review.
What you need:
Your debt counsellor will be with you every step of the way. To start, in addition to creating a new debt repayment plan for you and negotiating with your credit providers on your behalf, they’ll approach the court on your behalf and load your new repayment plan onto the Payment Distribution Agent (PDA) system. Then, you can expect your debt counsellor to:
Once you have settled all outstanding debt, your debt counsellor will issue a debt review clearance certificate, or Form 19. This is a legal document that verifies that you have fulfilled all obligations under every credit agreement included in a debt review court order or a debt review repayment agreement. The completion of the debt review signifies that your creditworthiness is restored. Debt review will be removed from your credit profile, and the successful completion of debt review will positively influence your credit score over time.
Find out more about debt review removal.
After completing the process, your record is clear and you are better equipped to deal with debt. What will you do with that financial freedom?