Debt Mediation

Debt mediation is a procedure in which a customer and a creditor negotiate an agreement to reduce the consumer’s monthly repayment obligations as well as the amount of interest charged.

Debt Mediation: Also referred to as a Voluntary Debt Mediation Solution, this debt management solution has presented a few flaws and has also been rejected by the National Credit Regulator, as it does not protect the consumer in all respects. Debt Mediation can allow relief from short-term debt or small portions of your existing debt.

In certain cases, Debt Mediation has proven to be beneficial, in that consumers are able to pay back their debts through a new payment plan that is more manageable, even if they do not present as over indebted. Since Debt Mediation is not legally binding (no court order is obtained) it does not protect the consumer from legal action. Consumers undergoing Debt Mediation can cancel the process at any time.

Check in with our Credit Rehab team of financial and legal consultants today, for solutions to overcoming debt.