Credit Debt Counselling Questions Answered
Some of the frequently asked questions about credit debt
counselling are briefly answered below to help you make
an informed decision regarding credit debt counselling.
Which debts are included under debt review?
Both secured and unsecured debts are included. This means that
house loans, personal loans, overdrafts, vehicle finance, credit
cards, and store accounts can be included as part of a credit
debt counselling program.
Which debts are excluded from debt review?
Service accounts cannot be included under debt review. This means
that cell phone contracts, water and electricity, rental, DSTV
contracts, and school fees cannot be included under debt review.
Is there a difference between a letter of demand and a judgement taken
against a person?
Yes, a letter of demand is normally a notification that legal steps
will be taken if the account is not settled or arrangements made.
It is a final notice demanding payment. With a letter of demand
there is normally a period stipulated in which such payment or
arrangements can be made. You can still join debt review when you
have received a letter of demand; provided you do so as soon as
possible before legal action is taken. A judgement pending or taken
means that a court has already decided on the matter and that you
have to make payment or certain steps will be taken. If you have
a judgement against you, it should be noted that the judgement
amount cannot be included in debt review.
Can a person still purchase on credit while under debt review?
No, for the period under debt review a person may not apply for
new credit or use the existing accounts other than to make additional
payments to such if so preferred.
Is debt reviewing the same as blacklisting?
No, debt review is not the same as blacklisting. Although your
name will appear at the credit bureaus it will be for notification
of debt review status. With blacklisting you will not be able to
apply for credit because of a poor credit history. With debt review
you will receive a debt clearance certificate once the debt has
been paid and will thereafter again be able to purchase on credit.
Contact us today
for professional credit debt counselling assistance.
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