What Is Debt Review?
The debt review process can provide welcome relief to those who are unfortunate enough to be drowning in debt & being continually hounded by all of their creditors trying to get their share of whatever money is left at the end of the month.
So if you’re wondering what debt review is all about & whether it can help provide you with some relief from your over indebted situation, the process is regulated in terms of the National Credit Act & aims to protect people drowning in debt against their creditors.
Furthermore, if you elect to go under the debt review process your creditors will be prevented from starting a legal process to recover their debts from you.
Your debt counsellor will negotiate favourable repayment terms, on your behalf, with your creditors which relieves you of that cumbersome burden.
The Debt Review Process, regulated in terms of the NCA (National Credit Act), protects over indebted consumers against their creditors & helps them to recover from their dire financial situation
Once this process has been completed and agreed upon, you will be required to make one monthly payment which will be distributed to your creditors in terms of the repayment plan which would have been negotiated on your behalf as mentioned above.
So what this means is that anyone who is under debt review and still needs a loan is either living beyond their means or the payment negotions done with their creditors & debt counsellor was not done correctly and has left you way too short in terms of your disposable income.
So, even if this is the case you will find it very difficult to get a loan through a mainstream bank or financial institution. The only place you may be successful in getting a loan is through a loan shark who will charge you a very high interest rate & will be non-negotiable when it comes to repaying the loan. This is therefore a very unattractive method of securing a personal loan while under debt review.
Termination of the Debt Review Process
The debt review process will be terminated or concluded once all your outstanding debt is totally paid or until your financial situation has improved to the extent that you will have a good case to apply to be removed from the debt review process.
Go to the following link to take the first step to becoming debt free here »
However if you do terminate the review process, you will no longer receive any protection should you experience any difficulties regarding keeping up with your debt repayment plan.
It would therefore not be wise to terminate the debt review process prematurely.
So after completing the debt review process, any references to you having been under debt review should also be removed from your credit record entirely so that your debt review history will not be possible to be picked up by anyone.
Go here to find out how to terminate your debt review process
5 Benefits of Going Under Debt Review
If you are swamped by debt & payments that you cannot keep up with, going under debt review may be exactly what you need to provide some financial relief…
- 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.
- 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.
- 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.
- You may also be protected in terms of having your house or motor vehicle from being re-possessed.
- 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 On Debt Review
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.
Go here for more information on getting loans while under debt review…