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    During Debt Review

    What is the difference between debt review and debt consolidation?

    Debt review and debt consolidation are fundamentally different approaches:

    Debt Review:

    • Restructures existing debts without new borrowing

    • Designed for over-indebted consumers who can't afford current payments

    • Interest rates are typically reduced

    • Legal protection from creditors

    • Cannot access new credit during the process

    Debt Consolidation:

    • One large new loan to pay off all other debts

    • Requires you NOT to be over-indebted at application

    • Often comes with higher interest rates

    • No legal protection from creditors

    • May make your situation worse if you can't afford the new loan

    For most over-indebted consumers, debt review is the more appropriate and safer option.

    Expert Answer

    Provided by NCR-registered debt counsellors (NCRDC3106)

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