- The consumer/client fills in an application, this is a standard form containing your personal information as well as which income and expenses you have.
- Then Debt Solutions uses this information to ascertain whether the consumer is over-indebted. This calculation is done by taking your income and subtracting any expenses and payment the consumer have in a month - if the result is negative the consumer is over-indebted, if the result is positive the consumer is not over-indebted and cannot apply for debt review.
- If the consumer is found to be over-indebted, he/she will be registered with the relevant credit bureaux as having applied for debt review and all of the consumer's credit providers will be notified of this as well. This means that for the next 60 days it takes to complete the debt review formalities, these credit providers cannot take any legal action against the consumer.
- After notifying the credit providers, Debt Solutions begins to analyze the consumer's income, expenses and monthly payments to see where adjustments can be made. This also involves negotiating with the credit providers for lower interest rates and/or longer payback periods.
- After analysing the data and negotiating with the credit providers, Debt solutions draws up a repayment proposal based on an amount that is affordable to the consumer. Thus, Debt Solutions makes sure that the consumer will have enough money in a month to live and still pay off their debt in the most efficient way possible. For this Debt Solutions uses in-house developed software to draw up an individual repayment plan for each of our clients.
- The Repayment proposal then get's send to the credit providers and the matter gets set down for a court date. Until the matter appears in court these credit providers will not be allowed to take any legal action against the consumer and also will not be allowed to repossess any of the consumer's property.
- When the matter appears before the court, the credit providers will have a chance to oppose the debt review and when an agreement is reached the repayment proposal will be made an order of the court and thus the consumer as well as the credit provider will have to abide by it.
- After all the afore mentioned proceedings is done the consumer continues to pay only one affordable amount each month, which will be distributed to his/her credit providers by a Payment Distribution Agency (PDA), until all the consumer's debt have been paid off.
- When all of the consumer's debt is cleared, he/she will be issued with a clearance certificate and the consumer will be given a totally clean credit record.
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