debt review loans

Debt review loans are a type of debt consolidation that can help people who are in severe debt. They can be used to pay off several different types of debt, such as credit cards, personal loans, and store cards. The process also helps to lower interest rates and fees that are associated with these types of loans.

When people are in extreme debt, they can often find themselves facing foreclosure and repossession on their property. These are both things that can be very stressful and difficult to cope with.

Thankfully, debt review is a legal option that many South Africans have taken advantage of to avoid these issues. It is a debt counselling program that was introduced in 2007 by the National Credit Act, and has been very effective in helping many people escape from the stress of debt.

The Debt Review Process

During debt review, your credit providers will be approached by your counsellor and a debt restructuring plan will be negotiated on your behalf. This is a legally binding document that will stop any repossession activity from credit providers, lawyers, and debt collectors, and is guaranteed by a court order.

Your debt counselling firm will negotiate lower interest rates with your creditors and extend your payment terms to make it easier for you to pay back what you owe. This can be done through a debt restructuring payment plan that is emailed to all your creditors.

When negotiating with your creditors, your counsellor will often reduce the interest rates on your accounts and waive certain fees that were previously imposed. These fees can include late payment charges, default charges, and collection agency fees.

This can save you hundreds of dollars a year in interest payments alone. In addition, it can free up more of your income to help you live a more comfortable lifestyle.

You should also note that it is illegal to get a loan while you are under debt review. This is because a loan is an extension of your existing debts, and taking on more debt is not a responsible or legal way to handle your finances.

One of the most common mistakes that people make when dealing with their debts is to consult a ‘loan shark’ or other unregistered credit provider while they are under debt review. These unscrupulous credit providers will offer you high-interest short term loans in order to make a quick buck, and the interest rates that they charge can often build up over time.

If you are in need of financial assistance, contact us today to learn more about how we can help you. We have over a decade of experience in helping people just like you and can help you to get out of debt fast.

The best way to manage your debts is to stick to a budget, and you should do all that you can to avoid becoming over-indebted in the first place. Read our money management blog for tips on how to stay on top of your finances and keep your debt under control.