The Concept Of Debt Counselling

Debt Counselling is a restructuring process to assist consumers who are not able to maintain their ordinary monthly installments to their creditors. It offers a proper plan for debt restructuring in order to avoid Judgement and Execution against property.. The debt review process makes sure that you keep some money for your daily expenses and use the rest to pay to the creditors. It gives priority to your living expenses before making payment to the creditors. Your monthly payment structure is organized and managed effectively by the debt counselling.

Duties of a Debt Counsellor

The debt counsellor makes an assessment of your financial position and makes a payment proposal to your creditors, which is negotiable with your creditors. It is also a duty of the debt counsellor to make his or her recommendations to the court so that the matter can be finalized by way of a court order. A debt counsellor also has to ensure that payments iva 成功 are being made to your creditors by a registered payment agency.

The Process of Debt Counselling

When a consumer applies, his financial position is assessed by the debt counsellor. This lets him determine whether the consumer is over indebted. The creditor will be informed that the consumer is availing the debt review service. Once it is done, no legal action can be taken by the creditor. Negotiations for a repayment plan should be carried out with the creditor within 60 working days, or the recommendations must be lodged at court within this period. A court order makes the consumer and the creditor secure and it finalizes the matter. All the consumer must then do is make one monthly payment which is distributed according to the payment plan.

The consumers who find it difficult to manage the debt should take an action on time. They should look for a debt review service or a debt counsellor who can guide them in handling their debt and even offer other solutions apart from debt counselling.

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