WHY IS DEBT REVIEW BETTER THAN A DEBT CONSOLIDATION LOAN?
While both offer relief from debt, only one actually frees you from debt. Debt consolidation is when you take out one large loan to cover other outstanding loan amounts, thus combining all payments to separate creditors into one payment to one creditor. While this can be great for relieving the stress of debt, and can lead to better repayment terms, it still leaves you with the full debt and no protection – debt review has the protection.
So, why is debt review better than a debt consolidation loan? When entering debt review your credit accounts are halted, ensuring you don’t continue to take out added debt on top of what you have. While under this process, a flag is placed on your credit record showing other creditors, making sure credit will not be granted and you can be protected. The protection in this regard goes a long way – clients undergoing debt review cannot be hounded by creditors or have legal action taken against them, so while under debt review, your assets are safe and guarded by the law.
With all details handled by your debt counsellor, advising you along the way to ensure you can continue to improve after the process is complete, the creditors must talk to the National Debt Advisors about financials.