Debt review is regarded as assisting customers who struggle to get out of their debt obligations by allowing them to pay minimum installments to cover their debt. Going under debt review means you have excepted to be regarded as over-indebted and you have approached a debt counselor to negotiate your monthly installments with your credit providers
Your debt counselor like Debt Hub will consult your credit providers to negotiate the reduction of interest rates on your debt and your installments. If your interest rates are reduced the installments are reduced too. Once the agreement has been reached with your credit providers, you will be liable to make one monthly payment to all your debt obligations.
Once the debt review process has begun, you will be legally protected from repossession of your assets and your creditors. You cannot skip payments as it will affect your negotiated restructured balance. In most cases, the credit provider will terminate the debt review agreement. You can end up losing your assets as your credit provider will take legal action against you.
Under debt review, you will not be liable to open another bank account or take a loan from the bank. The reason being that you went under debt review to settle all your existing debt and have financial freedom. Adding another debt will lead to bankruptcy.
Debt review is a great start to becoming financially debt-free and should be carefully considered, and understood before signing agreements.