In the English language the word ‘debt‘ keeps company with other words like ‘folly’, ‘misery’ and ‘destitution’. However, ‘debt review‘ is a phrase associated with ‘common sense’, ‘hope’ and ‘revival’. It refers to a legal process designed to help ordinary people who have have become bogged down, but have the means to rehabilitate themselves.
In Victorian England people laden with borrowings were thrown into prison until they repaid what they owed. The crass stupidity of this policy equates with war, with injustice, cruelty and bigotry. A person with intense personal problems is punished further by imprisonment to the detriment of all, including his creditors.
Personal financial reform is evidence of enlightenment in our times. Legislation allows debtors to enter into sensible arrangements to repay what they owe within reasonable terms and in light of the financial realities that surround them.
Unfortunately, the most deadly obligations are not alleviated by legislation. Many women who find themselves uneducated, single mothers and unable to find employment end up borrowing from friends and relatives. When those sources dry up they may in desperation sell themselves into prostitution. Human traffickers use ‘loans’ as a way of enslaving young women whilst they remain useful.
The kind of financial problems that can be solved by legal means are those that are incurred by salaried people. A person with a healthy salary can readily obtain credit cards or bank loans. The firms that issue such loans make handsome profits and are not responsible for spendthrifts who might be quite capable of landing themselves in serious financial problems in the course of a single shopping spree.
Debt review legislation is a response to the ease with which unwary consumers can slide into troubled waters. Professional counsellors, acting within the law can negotiate ways out for those who register formally as people seeking relief. They have to supply the correct documentation and agree to pay their monthly revenue stream into a savings account. From that point appointed counsellors will negotiate with creditors, arranging reasonable repayments after living expenses have been taken into consideration. The system benefits both borrowers and lenders.
