Debt Review Loans

 Loans For People Under Debt Review

For anyone who is under review it is unlikely that you will be successful when applying for debt review loans from any of the mainstream banks or lending institutions.

This is simply because granting loans to people under debt review would place the banks in contravention of the National Credit Act & this would therefore be against the law to grant such a loan or to provide additional finance to anyone who is currently under review.

Whilst the best option would be to avoid committing to extra debt & making your financial situation even worse, it is sometimes unavoidable & there are, however, certain options available to you to apply for a loan while under review one of which would be to end the review process or to approach a non-mainstream lender.

Go here to apply for your personal loan onlineApply For Personal Loans »

Loans While Under Debt ReviewSo getting loans for people under debt review or debt review clients (or to secure car finance while under review) may find it difficult to find a lender willing to grant such a loan.

However, you will always find a lender willing to grant you credit in such circumstances but you would be well advised to examine the loan conditions carefully and to especially take note of the interest rate being charged before signing & committing to such a loan as it could place you in a far worse financial situation.

It is also worthwhile checking to ensure that the lender is registered with the NCR (National Credit Regulator) which would provide some protection as opposed to some of the unscrupulous lenders out there.

It is also worth mentioning that you would have to settle all your existing debt before being able to successfully apply for further credit from any mainstream bank or credit provider, however this would not necessarlity be the case with other more “flexible” lenders.

Furthermore, once your debt has been cleared & the debt review process completed, it is important to ensure that your ITC record is clear so that you will have a clean credit record & future credit applications will be successful.

5 Benefits of Going Under Debt Review

Benefits of Debt Review Process

This process does however offer certain benefits for people who are in a situation where they are totally overwhelmed by their debts & are being hard pressed by their creditors to make payments that they cannot afford.

Undergoing a debt review may therefore be a lifeline for you because of the following reasons (however you do need to make informed decisions when discussing this process with your counsellor);

  1. Once you have been placed under debt review you are conferred with certain legal rights pertaining to your financial situation which, for instance, prohibits your creditors from taking legal action against you for a period of 60 days.
  2. In terms of paying off all of your creditors you will be required to only make one consolidated payment per month towards paying off all of your debt.
  3. The monthly payment can be reduced by 30% to 40% which will make things more affordable although it will take significantly longer to pay off all your debt.
  4. You may also be protected in terms of having your house or motor vehicle from being re-possessed.
  5. You can gain control of your financial situation & finally see light at the end of the tunnel.

While debt review offers many benefits, the downside is that you may be forced to give up certain luxuries & show the court that you are willing to curb your spending & committed to clearing your debt.

Conclusion Debt Review Loans

Finally ensure that you choose a reputable debt counsellor as many consumers have realised to their detriment that a less than reliable counsellor could cause you significant losses due to their mismanagement & negligent handling of your affairs.

Also remember that as it against the law to be granted a loan while under debt review, there will be unscrupulous lenders who may be willing to grant such loans but these loans will come at a significant cost in terms of interest & stringent repayment conditions.

So notwithstanding the above, and whilst you probably won’t be successful in applying through the mainstream banks, there are however other lenders who may provide you with the credit you need at reasonable interest rates & with acceptable terms.

Go here for more information on applying for personal loans »

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