Debt Counsellors are going to be playing a very important role in stabilising the fallout from the pandemic.
Those currently in Debt Counselling
Large financial institutions do not have the time or staff to deal with every case at an individual level, they make blanket policies which they then apply. This is not ideal for the average person who has had a horrible financial shock. To then be treated as a bank account number and struggle to get heard is even more stressful, after all, this is your financial future.
This is where Debt Counsellors come in. Through the process the financial institutions are forced to listen, and if they still will not listen, then the courts will listen, that is their function. They will decide who is correct and the courts are expected to be very lenient on people who have not used the situation to duck and dive, but have made payments where possible, and have documentation to prove loss of income, have budgets to show their living expenses and have communicated with their creditors through their Debt Counsellors during this time.
Should I apply for Debt Counselling now?
If you have had confirmation that your financial circumstances have changed, and you will not be able to fully pay all your debt going forward, then debt counselling can work for you.
If you were struggling to pay your debt before the pandemic, and now the situation is worse, then debt counselling can help you.
If you are looking for quick, temporary fix, then debt counselling is not for you. A Debt Counsellor will work out a new reduced payment plan, which will pay back the debt in a reasonable period, and all debt except your home loan has to be paid back before you are removed from debt counselling.
The Debt Counselling (Debt review) process is a very good process for the right people and many, many people are back on their financial feet as a result.
It is also wise to talk to as many people as possible before you take the step, this will give you opinions from “keep away” to “best thing I ever did”. Talk to debt counsellors and other experts as well, and decide if it is right for you.
