Debt Review Consequences

Debt Review Consequences

The National Debt Review Center

In this article, we share the consequences of undergoing debt counselling.

Debt Review Consequences

What are the Consequences of Debt Review?

1. While enrolled in the debt review program, you are not permitted to take credit.
2. The reduction of your monthly repayments means that the debt repayment term will be extended. Thus taking longer to finish paying.
3. The Debt Review listing will remain on your credit report until the program is finished, all of your debts that were included in the review have been paid in full, or you have successfully applied for debt review removal. (Learn more about Debt Review Removal Here)
4. You will no longer receive calls from credit providers, debt collectors, and lawyers demanding payment.
5. While your debt is being reviewed, your assets are protected. The debt review court order prevents any repossession activity from credit providers, attorneys, or debt collectors, so no creditor can file a lawsuit against you.
6. Once a court order for a debt review has been obtained, a consumer cannot stop or leave debt counseling.
7. You will never pay more money than you can reasonably afford.
8. It does cost some money, but the costs are regulated by legislation.
9. If you are married in community of property, both partners have to apply.
10. When the program is completely finished, you will experience total financial rehabilitation and spotless credit history.

The Truth About Debt Review

1. The pressure of present financial obligations is not lessened by debt review; rather, it is spread out over a longer time frame to make the load more manageable.
2. Debt review does not guarantee that creditors will not take any legal action or issue summons (especially if there is no debt review court order or some of the creditors have terminated).
3. Debt review does not guarantee lower interest rates or consolidation of debt. Some of the credit obligations might be excluded due to their legal status (i.e If legal action is already in place)
4. Debt review is not a procedure that can be quickly canceled and erased from your credit report.
5. Consumers who are under debt review are prohibited from receiving further credit, including for transactional things like cell phone accounts.
6. Debt review have helped millions of over-indebted South African consumers become debt free and have access to credit.

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