Key Signs That You Need Debt Review

Have you thought about debt review and wondered whether you qualify as a valid candidate? It can be difficult to ascertain whether you need debt review, especially during a torrential financial and emotional storm. Sometimes, despite trying our very best, we find ourselves in financial quicksand with no clue how to get out.

You should go under debt review if you’re over-indebted or have received an S129 notice. Both of these are key indicators that you’re snowed under mountains of debt with no way out.

Let’s discuss the key signs that you need debt review: the financial trouble you should be in, how they affect you, and what to do about them.

Signs That You Need Debt Review

You should undergo debt review if you’re over-indebted or have received an S129 notice.

Over-Indebtedness

Over-indebtedness describes being unable to afford living expenses or to make minimum payments on your debt. It can feel like having to pay off debt with no money, even when interest continues to pile on. You may find yourself pawning valuables or taking out payday loan after payday loan.

Missing minimum payments can result in higher interest, late fees, and derogatory marks on your credit report. It might also lead to harassment from creditors or debt collectors. Eventually, you may find yourself in court with a default judgment against your name.

Lastly, using credit to afford living expenses, like groceries, petrol or electricity, is a key sign you’re stretched too thin and should consider debt review.

An S129 Notice

If you default on your debt for long enough, you may find a Section 129 notice in your mail. This a notice from a creditor that you have 10 days to pay off your debt in full, undergo debt review, or seek legal counsel for a court appearance because you have not made alternative arrangements to pay off your debt. It’s a legal requirement in the NCA that creditors must fulfil before they can take legal action against you and can be issued 20 days after your account is in arrears.

If you opt for a court appearance, the court will likely place a judgment against your name or begin the debt collection process. Your assets may be repossessed, and if you continue to not pay your debt you may be issued a garnishee order (your employer must pay your creditors before they pay you) or administration order.

If you’ve received an S129 notice or are over-indebted, try Debtco Group. Our team will help you submit your application, also called Form 16, well before the 10 days are up. As soon as you submit a debt review application, you’re guaranteed legal protection. Once you’re approved for debt review, one of our debt counsellors will negotiate with your creditors for reduced interest rates and repayments. We may also assess for reckless lending, particularly in the case of payday loans. This way, some or all of your debt could be written off.

If you need help with over-indebtedness or legal protection, contact Debtco Group. We would love to help you live debt-free and reach financial freedom.