Can I still get a loan while under debt review?

by | Jan 21, 2022 | FAQ blogs, Personal Finance

“Can I still get a loan while under debt review” is a question many consumers ask.

The simple answer is NO – you can’t get a loan while you are under debt review.  The NCA governed program of debt review is designed to get you OUT of debt.

So what would be the purpose of committing to getting out of debt, only to get your yourself deeper into debt with MORE loans? It makes no sense!

Debt review is a government approved, NCR monitored debt relief option and is governed by the National Credit Act (NCA)

This legislation specifies that you may not have access to more credit until you have paid off all your existing creditors. You will however not be blacklisted at credit bureaus, but rather you will be “flagged”

This “flag” indicates that you are under debt review,  but it will come up when you apply for a loan and a creditor does a credit check. Subsequently, your loan will be declined. This “flag” does not permanently stay on your credit profile. It will be removed once you have finished  your debt review program and are debt free.

When you are under debt review, your  monthly debt installments will be lowered and should have more money left to live on. It is at this time that you should  get a grip on your debt  and regain control of your financial situation.

Your NDA debt counsellor will draw up a revised budget for you whilst under debt review. Instead of trying to access more loans, rather try to stick to that budget and become debt free- before getting further into debt.

If you are struggling, instead of going to unregistered micro-lenders for loans (as you won’t be able to borrow from registered institutions) rather try to cut down on your spending and adjust your standard of living. When you cut down your spend on certain items, it will free up cash, which can bring financial relief. Hopefully, this will put you in position where you  no longer need to apply for a loan.

Having creditors harass you, and always being scared of the sheriff of the court and repossession of your assets can cause extremely high levels of stress. No one wants to live like that.

The program of debt review can eliminate all that, and help you become debt free. So not being able to get a loan while under debt review may not seem like a drawback, when actually it’s a protection mechanism against further debt that you can’t afford.

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