If you are getting behind in the repayment of your debts and you realize that you will eventually fall into default, it is time to seek the services of a debt counsellor before things get any worse. A registered debt counselling agency will assist you in negotiating new terms with your creditors for a fee in what is called debt review.
What happens is that you present your case to an experienced counsellor who will assess whether your application for the review process is warranted. You have to be over-indebted to qualify which means that your net income is below what is sufficient to cover your credit obligations.
If your situation is ascertained, the counsellor informs your creditors of your registration for the review process. The counsellor will have to make arrangements with all of them and try to convince them to accept new repayment terms since you cannot afford the existing repayment regime. Should everyone come to a consensus, a consent order is obtained from court to close the agreement.
In the unfortunate event that one or more of your creditors decline your offer, they can make a counter-offer and if your counsellor advises you to accept you should go ahead. Should the terms be very unfavorable, you can decline and the case can be settled once and for all in a court of law.
Where you all agree, you then have the opportunity to pay at the new terms which are usually less burdensome than before. You also have the advantage of having peace of mind since you pay all your creditors with a single debit order which also reduces the transaction costs of loans and other borrowing repayment.
At this stage, you do not have to hide from your creditors for they cannot harass you any longer or even institute court proceedings against you if you are sticking to the new arrangement. The advantage of debt review is that your name is not blacklisted for going through the process. If you honour your pledge and pay your dues, at the end of the day you are given a clearance certificate and you are home free.