Are there consequences, and what exactly happens when you skip a payment while under debt review? In this article, we answer all these questions and provide best practice principles for when you are under debt review.
The National Credit Act of 2005 is in place to ensure that those who need a helping hand can navigate their debt without drowning. Overindebted consumers can use the NCA and contact debt relief counsellors, like Debtline, for a way forward rather than attempting to fix their debt independently.
Once you go under debt review, a contract is set in place that does two things:
- It helps you convert your debt into an easy, single monthly payment.
- It protects you from creditors and has a professional debt counsellor stand between you and those who will attempt to harass you for payment.
While both of these points are wonderful, it does mean that both parties must uphold the contract. Debt review companies such as Debtline do their part to keep you safe while you repay your debts every month.
There may come a time when you can’t make a payment for one month. If that happens, we’ve answered the most asked questions on the topic.
Can I skip a debt review payment?
The short answer is no. Skipping a debt review payment shouldn’t be an option or a consideration once you’ve entered into a debt review agreement.
More than just a formal agreement, debt review is a process that requires legal steps, and to keep that process running smoothly, monthly repayments must be made without fail. The legal process includes a court order and the acceptance of this order by all of your creditors.
What happens if I skip a payment while under debt review?
The first thing that will take place is that your debt review and the protection it provides will end. This means you will be utterly vulnerable to creditors who want their debt repaid. As is their legal right, creditors will once again start contacting you for payment, and if you cannot meet those requests, they can start legal proceedings.
Once underway, a court could decide that your car must be sold to fulfil debts or that a garnishee order will take payments directly from your salary. This is not a situation you want to deal with, and it’s not easily fixed.
What should I do if I can’t make a debt review payment?
If you find yourself in a situation where making a debt review repayment is impossible, it’s imperative to contact your debt review counsellor before this happens. Keep your counsellor updated with every issue that may arise and work with them to find a solution.
If you want to be truly debt-free, then committing to monthly repayments is the only way forward.
If you find yourself in the deep end of dealing with debt, contact the professional debt review counsellors at Debtline and get the help you need.