Debt mediation can also be called debt arbitration. Debt mediation as a service refers to the action where a professional debt counsellor assists in the meddling of payment arrangements originally made between the debtor and the creditor.
The debt counsellor lead discussions with your creditors to ensure that the best possible repayment arrangement is made between the debtor and the creditor. This usually takes place when a debtor applies for debt counselling/removal, and you can also request this service from a debt counsellor if you received a summons from the court not being able to repay your loans to the creditor in the accepted timeframe.
Once a court summons is received it can be a very stressful situation as in most cases when the creditor must go to these extreme measures to get the debtor to pay, the debtor is likely not in the financial position to continue with the repayment of the loan in the same way the debtor was, previously.
As previously mentioned, the debt mediation service refers to the professional debt counsellor making payment arrangements between your creditors and yourself as the debtor to ensure both parties benefit from the new repayment terms. The creditor usually agrees to the terms arranged by the debt counselor because with this repayment arrangement the creditor can be assured that the loan will be repaid albeit under different repayment terms.
By accepting the new repayment terms the creditor is also spared any court cases which might also lead to the creditor having to carry a bigger financial burden.
The accepted repayment terms that the debt counselor arrange with the creditor is therefore beneficial to both the debtor and the creditor because the debtor can pay back the loan according to the new terms, which might be lower rates for an extended period, and the creditor still gets paid back the loan from the debtor whereas if the terms was not accepted by the creditor they would have had to begin with the court case, and this can be timeously and expensive as previously mentioned.
It is therefore very important for a debtor to seek and make use of a debt mediation service that will be able to assist them with their creditor arrangements as these professionals know exactly what to say to the creditors and how to approach them for the best repayment terms that will suit both you as the debtor and the creditor.
We at NDCSA can assist you with this debt mediation service and our professional debt counselors are here to make sure you can also benefit from making use of this arrangement.
Contact us for further information on debt mediation and to get your quote today.