Debt Review & Debt Counselling

The consumer applies for Debt Review with the help of a Debt Counsellor or consultant.  The Debt Review process takes 60 working days.  The Debt Counsellor will prepare a debt restructuring proposal to the creditors.  Once this has been done and accepted by the creditors, the agreement becomes final and you will then be required to make monthly payments to the National Payment Distribution Agency.  They will then pay all your creditors and also the fees to the Debt Counselor.  An important thing to remember here is that once you have embarked along this route, the fact that you are under Debt Review will appear on your credit record with all the credit bureaus.  Also while this is the case, you are unable to get any form of credit from any credit provider.  You will continue to pay your prescribed amount to the National Payment Distribution Agency until such time as ALL your debts are settled.  Only then may you apply, with the consent of the Debt Counsellor, to have the reference to you Debt Review removed from your credit record.  It is important to realize that this is a very long process and could take years to pay off your debt, all the time paying fees to the Debt Counsellor.  Also remember that even after you have paid everything and the reference has been removed at the Credit Bureaus, you must still declare the fact that you have been under Debt Review on all credit applications and this could affect your interest rates and even whether or not you are granted credit.