Ever since it was introduced by the National Credit Act in 2007, people have been asking the question: is debt review good or bad? The answer is undoubtedly that debt review is a very good thing for over-indebted consumers. It has changed thousands of lives for the better, rescuing debt stressed households from the brink of financial ruin.
That said, as with everything in life, there are disadvantages to the process – such as not being able to take out any more credit for a few years. Though, in the long run, this is actually a very good thing, as it prevents you from racking up more debt and helps you become debt free.
If you are over-indebted and cannot afford your monthly repayments, you have only to benefit from opting to undergo debt review. Your debt counsellor will ensure that you can afford your repayments again, by negotiating with your creditors to have your instalments and interest rates reduced.
Meanwhile, your credit providers will be kept happy, as they will still be receiving payments from you, albeit lower ones. But you will make these payments over an extended term, so that you eventually pay back everything you owe.
This is a small price to pay, considering the alternative is a default judgment and likely an emoluments attachment order, robbing you of a large portion of your salary every month for years on end. Or worse, your home and car will be repossessed and auctioned off, so your credit providers can recoup what you owe.
So, when people ask us, is debt review good or bad? Our answer is always that debt review is an unmistakably good thing. If you want protection against your credit providers taking legal action and more affordable debt repayments, contact NDA and apply for debt review today.