Debt review loans have been a topic of much debate in the finance industry. There are many reputable lenders that offer loans to people under debt review and in some cases, it may be easier to obtain a loan whilst under debt review than you think.
The purpose of debt review is to assist over indebted individuals to become debt free by restructuring their current repayment structure and lowering their instalments. While under debt review it is illegal for you to take on any further credit, however this does not mean that you can’t get a loan. The key is to understand what the different options are for you, so you can make an informed decision about which option is best for you.
One of the most common questions we get asked is whether or not you can get a loan whilst under debt review. Typically the answer to this question is no, but it can depend on the specific situation and lender. Generally speaking, if you are under debt review, it would be wise to speak with your debt counsellor first to determine what your options are.
Once you have successfully completed the debt review process, your debt counselling company will issue you with a clearance certificate. Once this has been issued, you should not have any difficulty in applying for credit as banks will only care about your affordability and payment history. The debt review flag will be removed from your credit report and you should be able to qualify for any type of credit if you choose.
It is important to remember that there are unscrupulous credit providers out there who will try and take advantage of you, especially if you are currently under debt review. These unregistered credit providers can offer you cash loans at high interest rates, which will build up your debt over time – leaving you even worse off. This is why it is crucial to always talk with your debt counsellor and to only work with reputable credit providers.
There are a few lending choices open to you as a debt review client in Gauteng that you can consider when you need access to cash. One of the options available to you is a personal loan, which is an unsecured loan that you can apply for when you need it. This loan is available to debt review clients in South Africa and is an ideal solution for many situations, such as financing the purchase of a car, buying a home or growing a business.