There are many unanswered questions about how the new law will work practically, he says.
It will take some time, possibly up to 24 months, for regulations to be finalised, so the law can be implemented. Taking out more credit than you can afford in the meanwhile isn't a good idea and could have long-term implications for your credit record, says Sager.
Consumers should also be aware that the new law applies only to people in a particular income group who meet specific criteria, and the debt relief is not automatic, Sager says.
Consumers will have to qualify and then submit to a process before some or all of their debt can be written off.