DEBT MEDIATION


WHAT IS DEBT MEDIATION?

Debt mediation is a process that is intended to help consumers who are experiencing a cash flow problem that might only last a few months. An alternative arrangement affordable to the consumer and acceptable to the creditor is made on the consumer's behalf.

WHAT ARE THE BENEFITS OF DEBT MEDIATION?

If not already listed, you will be protected from being blacklisted;
Legal action, including repossession of your assets will be prevented where possible;
Alternative arrangements will be made with your credit providers, on your behalf, to lower your installments;
If you are over indebted, we can, instead of taking your case to court, apply the industry restructuring rules. If the rules are applied correctly, credit providers that are members of the NDMA are obliged to automatically accept the proposal;
You will be provided with an agreed, affordable and realistic monthly budget in order to resolve the situation in the shortest possible time;
Improved overall financial position.

HOW DO I PAY AND KNOW HOW MUCH TO PAY?

We will provide you with a repayment plan containing the agreed new installment amounts per creditor. You may make these payments to creditors directly or we will instruct a PDA (Payment Distribution Agency) to collect payment from you and pay creditors on your behalf. One payment (the sum of your new monthly installments) will normally be deducted via debt order and paid to your creditors based on the repayment plan.

CAN I PREPARE MY OWN REPAYMENT PLAN?

No, it is not advisable. The model used to prepare a repayment plan, is based on a set of pre-agreed "rules". The application of the rules is complex and a computer program would be required to prepare and table such proposals. If an unaccredited system is used, credit providers may question the proposal / plan and possibly reject it.

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