Remember that the debt check is not a blacklist, but a shelter set up to help those who are under debt stress. During the debt review, you should stick to the repayment schedule and not jeopardize your debt verification program. The Debt Review Center will negotiate with your loan providers on your behalf and design a manageable debt repayment plan that you can afford so you can take control of your finances and your future. If you undergo a debt check, you cannot be blacklisted by law.
Is debt review the same as being blacklisted?
If you are in a debt review, the National Payment Distribution Agency (NPDA) will collect the necessary funds from you and distribute the agreed monthly repayments to all of your lenders on your behalf. The debt counseling process is carried out to restore the client’s financial situation, and taking out additional loans will adversely affect the client’s financial well-being.
What does it mean when someone undergoes a debt check?
This prevents you from taking out any more loans as the primary purpose of the debt check is to help you pay off existing debts. In this case, you would have to undergo debt counseling together and you would both be subject to a debt check. You may or may not take on any new debts until all of your debts (with the exception of your bond or home loan) have been settled. However, if you are over-indebted, it is recommended that you seek out debt counseling to set up your debt review repayment plan as you are most likely committed to more than one lender.
References:
- Advice: Under Debt Review, Blacklisted and Need Car Finance?
- Can you be blacklisted while under debt review?
Barry Ritholtz is a renowned finance expert, author and blogger. With over 30 years of experience in the financial industry he has gained a reputation as a thought leader and influencer in the investment community.