Need a loan but under debt review?
Many debt counselling companies in South Africa see the process of debt review as a product. A sale on which an agent earns commission. In viewing it in this manner, they fail to disclose everything about the debt review process. The good, as well as what some may perceive as the bad.
National Debt Advisors was voted SA’s number one debt counselling company for 2020, so rest assured that with us – you will get all the information you need.
The process of debt review has many advantages. These include:
- Having your interest rates lowered
- Having your payment terms extended
- Consolidating all your debt payments into one lower monthly installment
- Being protected from harassment by creditors
- Protecting your assets from repossession
- Lowering levels of stress and anxiety related to financial matters
- Becoming debt – free and gaining a clear credit record within 6 – 60 months
If you have a steady income and are committed to getting out of the vicious cycle of debt, then all of the above should be enough motivation for you to do so. Yet, there is one factor (which when revealed) has proven to be bothersome to those considering debt review.
No further debt
The primary purpose of debt review is to become debt-free. So it is counter-productive to be making new debt, when you haven’t even settled your old debt yet. That is why, once under debt review – you will be flagged with the credit bureaus and you will not have any access to further credit.
If you need a loan but you’re under debt review – you will not be able to get one. Sebastien Alexanderson, CEO of NDA explains that consumers should understand that they are not “blacklisted” with any credit bureaus. “When a consumer is placed under debt review, their debt counsellor is obligated to inform the credit bureaus. The credit bureaus will note this on the consumer’s credit profile – and once the consumer has fulfilled their debt obligations and received paid up letters for their accounts, the credit bureaus will be notified and the flag will be removed.”
Relief and joy
“One of the best feelings in the world is when I sign the final clearance certificates for our clients. To see the relief and joy people feel at being debt free, having a clean credit and being able to start afresh – is really great.”
Not a quick-fix solution
The process of debt review is not a quick –fix solution. It requires commitment to the long term vision of becoming debt – free.
Getting a loan, on top of another loan – to pay off other loans is not the solution. The situation worsened when in desperation, consumers turn to unregistered microlenders and “mashonisa’s.”
Debt review is a process implemented by the National Credit Act (NCA) and overseen by the National Credit Regulator (NCR).
You may not be able to get a loan while under debt review, but you can become debt-free and start anew.