3 Common Misconceptions about Debt Review
There are numerous debt review and financial rescue misconceptions that individuals accept over time. Having inaccurate or inadequate information can undermine your capacity to choose the correct debt solution for your money related situation. Below, we take a look at a few misconceptions that have plagued the debt relief industry for years.
Misconception #1: Debt review takes longer than 5 years to complete.
This is not true.
This misconception stems from the way we conduct dealings with credit providers, implying that when we renegotiate your new repayment installments, in light of what we’ve agreed on regarding your credit providers, we do not plan for longer than 60 months (5 years). The reason behind this is it simply doesn’t get worthwhile or attainable, from a business point of view for your credit providers to accept a repayment plan that is going to take longer than 5 years to pay off.
Misconception #2: I have to appear in court when I’m under debt review.
No, you do not.
Your debt counsellor is not, by any means, obliged to appear in court unless they are instructed to do so by a magistrate. You will have a lawyer who will speak to your case in court on your behalf. It is under uncommon and unique conditions that the officer or magistrate will demand you to be in court. We recommend a Credit Law Specialist like VDL Attorneys if you need legal assistance.
Misconception #3: You lose your home or car during debt review.
No, your home and car are under protection.
One of the advantages of undergoing the debt review process is, when you adhere to your debt review installments, you will receive protection for your home and vehicle. Once in the debt review program, the National Credit Act (NCA) protects you from any legal action against your credit providers and shields your assets from repossession – as long as you keep up with your installments.
Read: Will I lose my assets if I’m under debt review?
Despite the fact that this is obviously expressed in the NCA a few credit providers take their risks and attempt to delude you into handing over your vehicle or home as a way of intimidating you.
Find out the truth about debt review, chat with an expert NCR- registered debt counsellor to debunk other myths. Visit Debtline for more information by filling out a free callback form.
