Loans for People under Debt Review South Africa
People are experiencing tough economic times in South Africa, with soaring food prices, electricity tariff hikes, petrol price increases, interest rate hikes and more. This may be why people are still taking out loans, even while under debt review.
If you are seeking loans for people under debt review South Africa, the best thing to do is to first consider all of the alternative options available to you.
As per the National Credit Act (NCA), while under debt review, you are not allowed to take out any more loans. If a lender does grant you a loan, while you are undergoing the process, this equates to reckless lending. (Click here to read more on reckless lending)
The reason being, those undergoing debt counselling are already over-indebted and cannot afford to repay their current debts, let alone any additional loans. The purpose of debt counselling is to rehabilitate your finances, and you cannot do this, if you keep adding to your debt.
The NCA introduced debt review in 2007 as a legal debt relief method. The process was put in place to help over-indebted consumers repay their home loans, car finance, credit cards and retail accounts. In order to avoid blacklisting, default judgments, repossession and garnishee orders.
The end goal of debt review is for you to settle all of your debts, become debt free and be rehabilitated back into the credit market. With more loans, come more payments – and for someone who is already debt stressed this is a terrible idea.
Only unscrupulous loan sharks offer loans for people under debt review South Africa. Chances are good that you will lose your home, car and most of your salary every month, if you keep taking out more and more loans. For this reason, we strongly advise against taking on credit, while under debt review.
Contact us now to see how we can help you.