If you want to know the difference between debt review vs debt counselling, there are only slight differences between the two. For the most part, when someone is talking about debt counselling, they are also talking about debt review.
Debt Review vs Debt Couselling
Debt review is a debt relief program put in place by the NCR in order to help over-indebted people to eventually get out of debt. Debt Review was introduced in 2007 as part of the National Credit Act. If you are put under debt review, a court judgement rules that you are under debt review and your debt status is changed until you can pay off your debt.
Debt counselling is a service provided by financial professionals called debt counsellors. A debt counsellor’s job is to assess your financial standing to determine whether you are truly over-indebted and if you are, the create the court application to put you under debt review.
The debt counsellor’s job is the administrative process of communicating with your creditors to inform them that you are under debt review, and to consolidate all of your debt into one loan. They also negotiate with your creditors to reduce the interest rate of your consolidated loan so that it will allow you more money to pay off your debt.
Professional debt counsellors are registered with the National Credit Regulator (NCR) to ensure that they stick to the debt counselling guidelines and do their job properly. The list of registered debt counsellors where you can check that a debt counsellor is legitimate is freely available to the public on the NCR website.
So What is the difference between debt review and debt counselling?
The difference between debt review and debt counselling is that debt review is a program, and debt counselling is a service. However, one cannot exist without the other. In order to be put under debt review, you will have to go through a debt counsellor. For that reason, both terms are often used to refer to the same thing.
To sum up.
The terms Debt review and debt counselling are used interchangeably to refer to the same process. For practical purposes, they mean the same thing. The main difference between them is that debt review is the program that you are put under if you are over-indebted, while debt counselling is the service provided by financial professionals who specialise in debt counselling.
If you are over-indebted and unable to keep up with your debts, you can contact a debt counsellor to see if you qualify for debt review.