Debt Review FAQ – Part 3
Will my credit provider continue to charge me fees while I am under debt review?
Debt counsellors run certain universally accepted calculations and up to 80% of all debt relief cases will result in a reduced monthly instalment. If your case falls within these accepted parameters, your credit provider will accept the computation and reduce their interest rates and service fees.
May I apply for more credit while under debt review?
No. Although the law protects over indebted consumers from legal action being taken by creditors, it also does not allow consumers under debt review to take on more debt during this period.
Can I at least use my credit cards.
No. Clients undergoing debt review will not be allowed to use their credit cards whilst under debt review. They will also not be allowed to apply for new cards during this period.
I am getting a divorce, what will happen to my debt review.
Divorcees under debt review will have to apply to have their original debt review agreements rescinded and will then need to submit two new and separate applications.
I am unemployed. Can apply for debt review?
The law only allows employed consumers to apply for and undergo the debt review process, however if a client is married in community of property, unemployed, but their spouse is employed, the law allows consumers to submit a joint application.
Will details of my financial situation be sent to all my credit providers and credit bureaus?
Yes, credit providers and credit bureaus will be notified that a client is undergoing debt review.