Debt review and credit

by | May 17, 2022 | Personal Finance

When considering debt review, the question of the ability to take on more credit while under the programme is often first on the list for most people. Afterall, one of the main reasons most people seek debt review in the first place is the inability to take up more credit due to over-indebtedness. However, debt review clients don’t even have to worry about this because, when you go under debt review, a qualified debt counsellor negotiates a single, low monthly installment with your creditors. This leaves you with enough money to cover other expenses like groceries, water and electricity, and transport. So, with your finances under control, you might not even need to acquire more debt.

Often referred to as a debt rehabilitation programme, debt review is all about assisting over-indebted consumers get rid of their debt and manage their finances better, therefore taking on more debt is not permitted. Consumers under debt review get declared overindebted and are flagged at the credit bureaus. However, once all your debt has been paid off and you have received your clearance certificate, your credit record will also be cleared, and you may rejoin the credit market.

By definition, over-indebtedness is the experience of being so overwhelmed by your debt you end up unable to cover your household expenses while paying your monthly debt installments. Debt review not only relieves you from this pressure, it also officially kickstarts your journey to financial freedom.

Founder and Debt Counsellor at National Debt Advisors (NDA), Sebastian Alexanderson says many consumers that have undergone the debt review process often say they not only gain back their financial freedom, but also retain it for a lifetime as they learn new financial habits during the process.

When you join our debt review programme, our qualified debt counsellors, are there for you every step of the way. They understand your situation and are sufficiently trained to help you navigate through your new financial journey. Even if your circumstances change and you find that, for whatever reason, you are no longer able to afford your debt review payments, you should contact your debt counsellor and they can work with you to find a solution. At NDA we offer effective debt counselling services that assist with making the necessary adjustments or remedies to stay afloat no matter what.

The important thing for consumers while undergoing the debt review process is to actively participate and commit to their financial freedom journey and make sure they complete the process. “Debt review is a lifeline for overindebted consumers, if you stop paying your debt review payments, your debt counsellor will withdraw their services and your creditors may seek legal action and repossess your assets to try and recover their monies even though you still remain under debt review,” said Alexanderson.

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