Debt Review Process

debt review processWhen a consumer is in debt, he usually seeks the help of debt management counsellor. The counsellor will be the one to guide him through process and will give him advice on what to do so he can get out of debt. The process of going to the debt counsellor, getting the advice and implementing the advices is called the debt review process.

To start the debt review process, the consumer has to first fill up the Form 16. This will be filled up along with supporting documents and will be submitted to the debt consultant.

Once the form has been submitted, the credit history will be extracted. This is a record of your credit history and will contain information on what debts have you incurred or debts that you have not paid off in the past. Once the application has been submitted, the debt review will now begin.

The debt review process usually takes about 60 working days before it will be finished. First the debt counsellor has to check the credit history against the data coming from the creditors. They have to give a feedback. Once the data has been verified, this will now be forwarded to the consumer for final checking or consultation.

If there are no problems encountered, the debt counsellor can now determine if the consumer is really in debt. The financial status of the consumer will be compared to his outstanding balance and see if he is still capable of paying the debt. If he is still capable, the counsellor is going to advice the consumer to cut on other expenses and to pay first his debt.

If he can’t pay anymore, the counsellor will negotiate with the creditors for possible credit reconstructions or repayment depending on the financial status of the customers. Once the creditor will approve, the counsellor can then relay this to the customer. All the customer has to do is follow the new restructure debt and pay the new monthly due.

It’s as easy as that. If you are in debt and don’t know what to do, you might as well go through the debt review process so you will know what to do. It won’t take long and it will not cost you much. The important thing is you get valuable advice from experts on how to get out of your debt. Call a debt consultant now to help you start the process.