The Truth About the Debt Review Process

Ever thought that the debt review process sounds a lot like prolonging the debt hangover you get after indulging in an extravagant credit binge? If this is how you feel about debt review, perhaps it’s time to get the full picture.

Reasons why you SHOULD GO under debt review 

• The debt review process involves extending the term of repayment and reducing the amount of your monthly instalments, so you are able to keep up with them, as well as afford your essential living expenses and don’t have to live hand to mouth.
• Debt review protects you from losing your property and assets because, as soon as your debt counsellor notifies your credit providers that you are under debt review, they are not allowed to take legal action against you for 60 days after being notified.
• If you are under debt review and the interest you owe increases to the point where it’s equal to the original amount you owed, your credit provider can’t charge you any further interest by law.
• You get a clearance certificate and a clean slate at the end of it!

Debt review is not a way of financing a lifestyle beyond your means, or a quick fix that will get you out of paying off your debts. At NDA, our DCs will present you with options that are designed to improve your financial circumstances, not to put you deeper in debt.

A budget restructure may be all you need to regain control of your finances and, if we find this to be the case after assessing your finances, our dedicated consultants will assist you with this too.

Reasons why you SHOULD NOT CANCEL your debt review

• Your original interest rates and other contractual terms will apply again, if you decide to pull out of the debt review process.
• Credit providers will be able to take legal action against you once again.
• You will no longer be on your way to rehabilitation, but will only continue to wrack up more debt.
• You won’t be moving towards getting a clearance certificate anymore.
• Your credit profile will be adversely affected.
• You may be rejected for certain positions of employment, should you apply for them.
• You will be rejected for loans at reputable financial institutes.

If your reason for wanting to cancel is simply because of poor service from your debt counsellor, we recommend that you transfer to a new, more experienced and reliable DC, like ours at NDA and we’ll get you well on your way to becoming DEBT-FREE!