Getting Advice Or Starting The Formal Debt Review Process?
Getting Debt Advice Vs Applying
When you speak to a Debt Counsellor, they may ask for details about your income, expenses, and debts.
This can happen in person, online, or over the phone. With this information, they can suggest ways to cut costs and explore possible arrangements with credit providers.
But is this a formal application or just a phone conversation?
It is best to clarify which it is.
Making Things Formal
An initial discussion is just an advice session.
Getting advice in this way is normally free and very helpful. But it is good to specifically clarify that you are looking for advice, not to start any formal process (yet).
If you need serious help, the Debt Counsellor may suggest applying for debt review by completing a Form 16. This is a legal step that officially starts the process.
Form 16 is the official debt review application. It includes your financial details and may outline debt counselling costs and the pros and cons of debt review.
Signing it formally begins the process and may grant your Debt Counsellor authority to liaise with credit providers on your behalf.
Once the Form 16 is signed, your application for help is submitted to the National Credit Regulator (NCR), which notifies all credit bureaus.
A temporary listing will appear on your credit report. If you do qualify for official debt restructuring, this flag remains until your debts are cleared.
If you’re struggling with debt, feel free to speak to a Debt Counsellor for advice. You don’t have to sign anything right away, but if your situation is serious, completing a Form 16 can help you start the journey to financial freedom.
