The question everyone asks me is: ‘Is debt review good or bad?’ The answer is that debt review is a lifeline for over-indebted consumers, it is a life-saver for everyone who needs to get out of debt. It has changed peoples lives around and has rescued them from almost ruining their entire household.
That being said, as with everything in life, there are disadvantages to the process - for the TIME that you are undergoing debt review, you will not be able to take out any credit. Though, this is actually a good thing - it prevents you from getting into anymore debt. It helps you throw away those cards and start using cash. The whole idea of ‘debt review’ is to become free of your debts and to not get into any more debt.
‘debt review’ is when a debt counsellor assess your outstanding debt and implements a restructured debt repayment plan. This is done through the process of renegotiating interest rates with credit providers in order to reduce your debt as well as extending the debt repayment terms.
A new affordable monthly budget and payment plan will be drawn up by one of our consellors which will provide you with the correct guidelines and means to live off.
When under debt review you are legally protected by the NCA and creditors are no longer allowed to harass you.
Your credit providers will be kept happy, as they will still be receiving payments from you; lower ones. But you will make these payments over a period of time as the debt repayment terms will be extended, so that you eventually pay back everything you owe.
This extending period of time is a small price to pay, considering the alternative option when in debt is people robbing you of a large portion of your salary every month for years on end. Or worse, your home and car will be repossessed and auctioned off, so your credit providers can recoup what you owe.
So when people want to know if debt review is good or bad we tell them that it is a lifeline. If you are in any need of becoming free of your debts, email us today so that we can help you.
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