Debt Consolidation, Debt administration & Debt mediation

Table of Contents

Debt consolidation means taking out a new big loan to pay off a number of liabilities and consumer debts, generally unsecured ones. In effect, multiple debts are combined into a single, larger piece of debt, usually with a high-interest rate, with a period terms 3 -5 years.

Debt Administration is a process that is intended to help restructure the debt obligations of consumers who cannot pay their debts, have judgments or do not qualify for Debt Counseling. A repayment plan that is affordable to the consumer is developed and made an order of Court.

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.
In case the client chooses one or more accounts to be negotiated or reduced.
The client can still use their credit facility
Clients can make new debts and are always in danger of becoming over-indebted

Debt Review Training