What are the advantages and disadvantages of debt review?

In this section, The National Debt Review Center explains what are the advantages and disadvantages of debt review. We understand that it is common that if you are struggling with paying off your debts, you may be considering debt review.

It is therefore very imperative to weigh up the advantages and disadvantages before you come to your final decision. This will help you to decide if debt review is the best choice for you.

What Are The Disadvantages of Debt Review?

1. Not Everyone Qualifies – You must be a South African Citizen in order to qualify for Debt Review.
2. You might take longer to pay off your debt as a result of paying lower monthly instalments.
3. If you are married in Community of Property and your partner is struggling, you both have to apply.
4. Once a debt review court order has been obtained a consumer cannot terminate or withdraw from debt counselling. (Read About Debt Review Removal Here)
5. You will not be able to take out credit during the debt review process.
6. You will not be able to use any of your retail store cards, credit cards or overdraft facilities.
7. Some of your accounts, especially those which have been subjected to legal action, may be excluded. (i.e summons issued or judgements)
8. After your initial assessment with a debt counselling company, you may be informed that your current situation does not qualify you to go under debt review. (If a debt counsellor determines that you are not over-indebted, you will not qualify for debt review. If this is the case, you will be issued with a letter of rejection explaining why you have been rejected).
9. The fees can be high and you will only start to pay your creditors from the third month onward. (See Debt Review Fee Structure Here)
10. You or your spouse must have a steady income. (Must be employed permanently or self employed and prove monthly income)
11. You must be over-indebted. (Take This 20-Second Quiz to See If You Are Over-indebted)
12. You cannot skip your new re-arranged monthly payment.

What Are The Advantages of Debt Review?

1. It is Guaranteed that you will become debt-free if you complete the debt review process.
2. You will no longer receive calls from credit providers, debt collectors and lawyers demanding payment. (If they call, refer them to your debt counsellor).
3. You pay one reduced monthly affordable amount that pays all your accounts. (This amount also include ALL debt review fees) See Debt Review Fee Structure Here
4. While under debt review, interest rates on your accounts are reduced.
5. Your assets are protected while under debt review. No creditor can take legal action against you because the debt review court order stops any repossession activity from credit providers, lawyers or debt collectors.
6. The consumer is flagged under debt counselling and but there is no permanent record of having undergone debt counselling on credit bureaus. (You will be able to take credit in future)
7. Your sleepless nights will become a thing of the past and you will feel relief immediately, as someone else is taking care of the process. After the process has been completed, you will have a clean record and further financial relief. Your finances will be in order and you can enjoy a new, stress free life.
8. Your debt could be entirely written off. (If you are a victim of reckless-lending).
9. Now that you will be paying less on your monthly debt, you will have more money available for your essential living expenses like food, electricity and transport.
10. You will never pay more money than you can reasonably afford.

Read More About Debt Counselling Benefits Here.

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