The National Debt Review Center has taken it upon itself to clarify the importance and the downsides of debt review. This is because people struggle with debts, and may consider debt review after exhausting alternatives. Our job is to present you with facts that may assist in your decision-making. However, though it is important to weigh the drawbacks and advantages of debt review, it’s your discretion to choose from the available options.
The disadvantages of debt review
1. The first criteria bars non-South Africans from qualifying as debt review is only open to South Africans.
2. You may have the privilege of paying your debt off in a long time because the monthly payment is in installment and is low.
3. Both couples have to apply if their marriage is under Community of Property and if one of them is struggling financially.
4. A consumer cannot cancel or change his mind about debt counseling once debt review is long past court order. (Read About Debt Review Removal Here)
5. It is not possible to request credit while debt review is in progress
6. It will be impossible to make use of retail store cards, credit cards, or even overdraft facilities while under debt review.
7. Some accounts are usually excluded i.e., accounts suspected of fishy activities by which legal actions have been taken against it either through judgments or court summons.
8. When you apply, you’ll be assessed by debt counseling company to ascertain if you are qualified for debt review or not. If a debt counselor does not clear you because you are not yet over-indebted, your application will be rejected, and given this, you will be issued a letter of rejection clarifying why.
9. In cases where the fees are high, you will only be allowed to pay your creditors from the third month onward ( See Debt Review Fee Structure Here)
10. To qualify you must prove you’re employed either permanently or personally. A steady income is a litmus test to approve your application or not.
11. Your debt must be beyond the red line before you can qualify for debt review ( Take This 20 Second Quiz to See If You Are Over Indebted)
12. You are not allowed to skip any new rearranged monthly payment for anything.
The advantages of debt review
1. Once you complete the debt review process, you will for certainty become debt-free.
2. Lawyers, credit providers, and debt collectors can no longer call you requesting payment. And, if they do, direct them to your debt counselor.
3. One reduced monthly payment that includes debt review fees and is affordable will make up for all your accounts financially. (link See Debt Review Fee Structure Here)
4. Interest rates are cut down on your accounts while you are still under debt review
5. The debt review court order stops creditors such as credit providers, debt collectors, or even lawyers from taking legal actions against you. This is because all your assets are protected while you are under debt review.
6. No permanent records exist for the consumer who has undergone debt counseling. This enables you to be eligible to request credit in the future.
7. Financial relief is guaranteed once your debt review is in progress. The final stage involves having your name and record being cleared so you could go on to enjoy your life in peace.
8. If you are unfortunate to be given to reckless lending, all your debts will be canceled under debt review.
9. Because you will be paying an almost insignificant amount of money on your monthly debt, you will be able to cut corners and meet your daily needs such as food, electricity, and transport.
10. Never again will you part with more money than you can afford.