How Debt Review works:-
If you suspect that you are over-indebted or find that your expenses exceed your income, you can apply to a debt counselor for debt counselling An Assessment will be done of your financial situation, Form 16 application. The Debt Counselor will work out if you are over-indebted (if your payments are simply unaffordable on your current income).
If it is concluded that you are in fact over-indebted, the debt counselor will inform the credit bureaus that you are under debt review where you won’t be able to access further debt, this is NOT like a blacklisting – it’s protection. It will be removed completely once you’ve paid off all the debts.
The credit providers are required to send information regarding your accounts including outstanding balances, interest rates and the monthly repayment. Once all this information is at hand a repayment plan will be drawn up, work out how much you need to live on and what is available to repay debts.
A Debt Review application is a legal process that requires your full co-operation and participation at all times.