These questions are asked constantly, and for good reason.

The short and legally correct answer is no.  But, if it’s not a problem, why are people constantly asking the question?

I believe the answer is two-fold.

Firstly, not many people understand the difference between a credit agreement and a service agreement.

Everyday examples of Credit agreements are loans, credit cards, overdrafts, and all the store cards.  Service agreements are phone accounts, policies, insurance and accounts like your monthly municipal accounts, and then your rent.

In debt review, we reduce the amount that you pay on your Credit Agreements and we leave the service agreements alone, and they carry on as they always did.

READ MORE: How to fix a bad debt review

As part of the debt review application process, you will need to supply the amounts that you are spending on Service agreements, and this is to put a complete picture of your personal finances together in the court documents which the magistrate will assess.

Secondly…

Someone in debt review should not be discriminated against, if they can demonstrate affordability and have a good payment record.

When you make most financial applications today, a credit report will be drawn and your debt review status will be visible.  The credit report will also tell them what your payment history was like, and whether you have any judgments.  A company entering into a contract wants to know who they are dealing with.

The affordability issue is one we come across regularly from clients who apply for a new contract or want to rent a new property.  We supply a letter which states what the affordability of the client was  when they applied, or a new assessment is done, if you have for example had a pay increase.

Something that we as Debt Counsellors cannot change is the payment history and the judgments. Many people blame debt review because they are turned down when in fact it’s because they have a poor payment history prior to debt review.

The, of course,e you do get the Cell Companies and letting agents who do from time to time change their minds, or some of the staff don’t understand the law and we do have unreasonable refusals.

ALSO READ: What is responsible credit?

Despite those that do not follow the law, you do have protection and can insist on your legal right.

If you are still struggling with your finances, and you can’t keep your head above water, contact RD Debt Counselling for a FREE debt review.