Missing a monthly repayment under debt review can have various consequences, and it’s essential to manage and rectify the situation promptly to maintain the benefits of being under debt review. If you miss a monthly payment, credit providers will terminate the plan and institute legal proceedings. To avoid this, it is important that you disclose your complete situation so that we work out a more affordable debt repayment plan. Should there be any change in circ*mstance notify your consultant. Here's a breakdown of what happens and what you should do if you miss a monthly repayment:
1. Communication with Debt Counsellor:
- Immediate Notification: Inform your debt counsellor as soon as you realize you might miss a payment or immediately after a missed payment.
- Guidance and Support: Your debt counsellor can provide guidance on how to manage the situation and communicate with creditors on your behalf.
2. Potential Consequences:
- Loss of Legal Protection: Missing a payment can compromise the legal protection afforded by debt review, potentially exposing you to legal actions from creditors.
- Creditors’ Reactions: Creditors may opt to terminate your debt review status, seeking alternative means to recover the owed amounts.
3. Rectification Measures:
- Rescheduling Payments: Discuss the possibility of rescheduling payments with your debt counsellor to maintain adherence to the debt review process.
- Reviewing the Budget: Your debt counsellor may review your budget and repayment plan, making necessary adjustments to accommodate financial changes.
4. Ongoing Compliance:
- Commitment: Demonstrate a commitment to adhering to the revised repayment schedule, ensuring future payments are made as agreed.
- Consistent Communication: Maintain open lines of communication with your debt counsellor, keeping them informed of any financial changes or challenges.
Key Takeaways:
- Proactiveness: Act promptly if you anticipate payment challenges, seeking advice and support from your debt counsellor.
- Flexibility: Be open to adjustments and recommendations made to facilitate ongoing compliance with the debt review process.
- Awareness: Be cognizant of the potential implications of missed payments, ensuring informed decision-making throughout the debt review process.
Missing a payment under debt review is a serious matter, but with immediate action and the guidance of a debt counsellor, it is possible to navigate through the challenges and maintain progress towards financial rehabilitation.
