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Is debt review good or bad?

Written by Moku | 25-Nov-2019 09:52:56

Considering Debt Review? Here's what you need to know

We’re often asked if debt review is good or bad and it all depends on your circumstances. If you find you are falling into arrears and you can no longer service your debt with the money you get in each month, you could be over—indebted.  If you are, then debt review is the solution for you. Since debt review was introduced by the NCR National Credit Regulator in 2007 it has provided much need relief for many consumers. Debt review can help relieve stress and anxiety from not being able to pay your debt. Your assets are protected from repossession and at the end of the process your credit record is restored.

The bad

The main barrier for consumers is that you cannot access any further credit. This is to ensure the debt you already have is paid fairly. It can be a good thing for you though as helps you to regain financial control.  As opposed to continuing down the debt spiral and you finally break the cycle of taking credit to fund your lifestyle.

The good

When you undergo the debt review process, your debt counsellor will make sure that you can afford your monthly repayments and put you on the right track to financial freedom.

Your debt counsellor will negotiate the current interest rates with your creditors so that you can pay less. This will allow you to make your debt repayments as well as having enough money left over to pay for living expenses.

Your credit providers must abide by the rules of the NCA. They cannot proceed with legal action once you enter the debt review process. This means your assets are protected from repossession and you no longer get hounded by them for payment.

If you are in debt and want to get affordable repayments and protection from your creditors and repossession, contact us today.