Debt Review Loans have been widely discussed in the industry as impossible to obtain and or abused by unscrupulous and unregistered credit providers, but that does not mean one cannot obtain a debt review loan or a loan in general.
There are a lot of different types of debt review loans or loans in general out there, and it can be hard to know which one is right for you. That’s why it’s important to do your research and understand the different options before you decide to take out a loan.
One type of loan that you may be considering is a personal loan. Personal loans can be used for a variety of purposes, including debt consolidation, home improvement projects, or medical expenses. Personal loans typically have lower interest rates than credit cards, so they can be a good option if you’re carrying high-interest debt.
Another type of loan that you may be considering is a student loan. Student loans can help you pay for your education, and they typically have lower interest rates than other types of loans. If you’re considering a student loan, make sure to shop around and compare rates from different lenders.
No matter what type of loan you’re considering, it’s important to do your research and make sure you understand the terms and conditions.
This article will therefore share different and most effective ways in which you can obtain credit.
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Debt Review Removal Loans
We are certain that the reason you clicked on this article is the fact that you are asking yourself one of the following questions.
- Can I get a loan while under debt review?
- Can you get a consolidation loan while under debt review?
- Can I trade in my car while under debt review?
- How long does it take for your name to be cleared from debt review?
- How can I be removed from debt review?
- How can I get a debt review clearance certificate?
- How long will it take to get credit after being under debt review?
Rest assured, we will cover the above and provide you with more information so that you can go about enjoying the benefits of having access to credit like the majority of our fellow South Africans.
How to get a loan while under debt review?
To answer this in a short and simple way you need to do the following.
- Apply for Debt Review Removal – if you are no longer over-indebted, were wrongfully listed by an unscrupulous debt counsellor, or do not have a debt review court order in place and can afford the original repayments then this will be the first step. You will also need to note that there are legal fees involved which can amount from R3500 to R12000.00 but don’t worry our fee is set to R6000.00 which can be payable over 2/3 months. (Download the Debt Review Removal PDF form Here)
- Apply for a Debt Review Clearance Certificate – Sometimes your credit application gets declined because your debt counsellor did not issue a clearance certificate (Form19) or have not updated all registered credit bureaus as required. in this instance, you will need to contact your debt counsellor and request them to issue the clearance and update all registered credit bureaus. Contact the NCR on 0860627627 should you fail to get in touch with your debt counsellor. And as a last resort, you can contact us and we will assist at a fee of R450.00 vat excl.
- Consulting a loan shark or a lender that is not a registered credit provider could be the worst decision that you will ever make. Loan sharks do not operate under the necessary and strict regulations implimented by The National Credit Act and in a sense are outside of the law. These loan sharks will often offer you high-interest short term loans for a quick fix, resulting in interest rates building and your paying much more than originally borrowed.
Now to answer your questions.
Can I get a loan while under debt review?
Yes, if you have successfully applied for debt review removal or have obtained your clearance certificate. (Read more about debt removal here)
Can you get a consolidation loan while under debt review?
No. The National Credit Act (NCA) prohibits you from acquiring or utilising any further credit while you are under Debt Review.
Can I trade in my car while under debt review?
You are not allowed to acquire any new or additional credit during your Debt Review program. With that said you will not be allowed to trade in your current vehicle below Debt Review for a new vehicle if it is linked to a new credit agreement.
How long does it take for your name to be cleared from debt review?
21 business days after we have received your removal order or issued a clearance certificate.
How can I be removed from debt review?
How can I get a debt review clearance certificate?
How long will it take to get credit after being under debt review?
After 21 business days. You will however need to build your credit score in order to meet lender requirements. Check out this awesome article for free credit reports and free credit scores.
Beware of the following when you want a loan under debt review.
- Unscrupulous Credit Providers – This includes all unregistered credit providers (loan sharks, pawn your car and still drive it deals, blacklisted loans, no credit check loans, etc). They will provide you with no solutions and cause more headaches or sleepless nights.
- Big Promises for Quick Fixes – Often over-indebted consumers get approached by sales consultants. These consultants are willing to offer them credit, as long as they are able to exit their review. This is a reckless course of action as these salespeople are not acting according to the spirit of the NCA or NCR and are interested only in their commissions.
- Advice from a registered credit provider, debt collector, or law firms –
They may ask how you are planning on dealing with your existing debt, and offer a better repayment deal with smaller monthly repayment amounts. Agents working like this won’t be fully aware of the other credit providers involved in your debt review plan or care about them for that matter, and importantly, they may not consider that paying smaller amounts each month is not necessarily better in the long term for the consumer. They may suggest you leave debt review in order to be able to apply for the cheaper, ‘better’ deal, which we now understand is not possible until the process is completed.
The issue with an offer like this is the now extended time span. The consumer faces the risk of falling into bad habits or repayment problems while trying to settle their debt along the way. The consumer is left exposed to their debt for longer and may end up accumulating interest over time due to fees and/or bad rates that the agent fails to disclose.
It’s rare such an agent will put your offer in writing, and anything not in writing when it comes to managing your finances is frankly irresponsible, for example, should the consumer leave their debt review and waive their protection rights as a result, they are left with no actual record of the ‘better’ offer they were pitched. The consumer is left without assistance, almost a sitting duck waiting for creditors to pounce. You might have exited your debt review on this advice, then once ready to accept the “better” offer, be told it would be considered reckless lending to grant the deal.
Check with your debt counsellor if you are able to include in your debt review the deal offered by the agent, leaving you still protected under the process.
Our Advice On Debt Review Loans
Rather stick to your current debt review plan, you will be debt-free but if you are no longer over-indebted and can manage your credit apply for debt review removal.
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