What happens if I miss, stop or can’t pay my debt review?

Debt review comes with a ton of benefits—including lower monthly debt repayments…

Which means it should be really easy to afford. Does that mean it is okay to miss a payment?

No. Missing payments or not paying is a bad idea. Here’s why…

 

What happens if I miss, stop, or can’t pay my debt review?

Missing, stopping, or failing to pay while under debt review disrupts the repayment plan and may result in legal and financial consequences. Creditors can terminate the debt review process, reinstate original loan terms, and take legal action like repossession or wage garnishment.

Missing payments is a really big deal.

 

 

There are better options. We’ll cover those in a sec.

Let’s look at the consequences of missing payments versus not paying at all.

 

What happens if I miss my debt review payment?

Missing a debt review payment disrupts the repayment plan and may lead to penalties or allow creditors to take legal action. Initially, missed payments cost more and hurt the consumer’s credit score. However, if the individual continues to miss payments, the consequences get worse. Which leads to more fees and the termination of debt review. After which, legal action like judgments or repossession follows.

What happens:

• Creditors are informed of the missed payment.
• Debt counsellors typically reach out to the debt review applicant about the missed payment.

 

Consequences of missing:

• Penalties and interest are added, increasing your debt.
• The missed payment hurts the applicant’s credit score.

 

That’s how it starts. Now, what if it continues…

 

What happens if you stop paying debt review?

When someone stops paying their debt review payments, it eventually terminates the debt review process. Which reinstates the original terms of each debt with the outstanding balances and terminates any legal protection available under debt review. This means the debt repayment goes back up and creditors may start the debt collection process. Taking legal action like repossession or garnishment to recover the outstanding debt.

It’s like losing your safety net when you need it most.

What happens:

• The debt review process is terminated by your debt counsellor or creditors.
• Creditors regain the ability to enforce the original credit agreements.

 

Consequences of stopping:

• Creditors can repossess assets or garnish wages to recover debt.
• Applicants give up the legal protections provided by debt review.
• Future negotiations with creditors or counsellors become more difficult.

 

The bottom line is, it’s not a good idea to miss payments or to stop paying.

 

What happens if I can’t pay my debt review?

If you can’t pay your debt review, you should talk to your debt counsellor to find out if they can negotiate temporary adjustments to your repayment plan. Otherwise, missed payments could terminate the process, reinstate the original terms of the debt, and expose you to legal action.

What should happen:

• Talk to your debt counsellor as soon as possible
• The debt counsellor evaluates the situation and tries to apply temporary adjustments.

 

Consequences of not paying:

• Debt review may be terminated, exposing you to the original debt terms.
• Legal action, including repossessions and wage garnishments, becomes likely.
• The financial burden increases due to added fees and interest.

 

Luckily, there’s always something you can do.

 

 

What to do if you can’t make a debt review payment

If you find yourself unable to meet a payment under debt review, take the following steps:

• Adjust your spending: Reassess your budget to try and find a way to afford the debt review payment.
• Contact your debt counsellor immediately: Discuss your financial situation and explore the possibility of revising your repayment plan.
• Provide supporting documentation: Supply evidence, such as proof of income loss or unexpected expenses, to help your debt counsellor negotiate with creditors.
• Explore financial assistance options with your debt counsellor: Some creditors may offer short-term relief or payment holidays for individuals experiencing financial hardship.
• Look for alternative income sources: Consider part-time work, selling unused assets, or a second job to temporarily boost cash flow.

 

That might feel like a lot, but remember, with debt counselling, there’s someone who can help you through it.

 

Final thoughts

Managing debt through a structured process like debt review can be part of the solution to someone’s financial problems. But consistency is key. If challenges arise, take action early—communicate with your debt counsellor and explore adjustments.

Debt review is a powerful tool if you stick with it.

If you want to talk to someone about managing your debt, we can help. Try our online assessment at My Debt Hero to see if you qualify to reduce your debt.