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  • Writer's picturezarreen soni

The Benefits Of Your Debt Counselling Credit Score…

A customer may be deemed to be overindebted through a formal legal process known as debt counselling, at which point a debt counsellor can negotiate a new payment plan and obtain a court order approving it.

If you have good credit, you will likely be approved for the best interest rates, which will result in lower financing costs on credit card balances and loans. The faster the loan is repaid and the more money you have left over for other responsibilities, the less interest you pay.

The Objectives of a Debt Counsellor is to:

• Assess the full extent of your debt situation

• Assess your assets that may be taken into account

• Provide a debt remedy that gives you with an acceptable standard of living while repaying your debts according to your affordability – this includes retaining the home and a vehicle where possible;

• Provide you with an agreed, affordable and realistic monthly budget in order to resolve the situation in the shortest possible time;

• Provide a repayment scheme acceptable to your creditors and confirmed by the Court;

• Prevent repossession of assets where possible.

• Rehabilitate you without detriment for the future; and

• Allow you to get on with your life.

How does debt counselling help individuals manage their debt effectively?

This essentially means that if you are over-indebted, a debt counselor can bargain on your behalf with your creditors to obtain lower interest rates and smaller monthly payments. Professional debt counseling reduces your debt and should be customized to meet your specific financial demands.

Your credit report will already be impacted if you already have a history of late payments or "defaulted accounts" prior to enrolling in a DMP. Following the conclusion of your debt management plan, you have the chance to rebuild your credit. If you adhere to the terms set forth when your negotiators finalize your repayment plan, debt counseling with an experienced, professional team results in significantly improved credit scores for your future financial situation.

Contact Clear Review Consultants for a tailor-made financial solution plan on 0215696041 or visit our website to fill out a form:

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