What is the disadvantages of debt review?

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Your debt review will appear on your credit file until the program is completed or until all of your debts listed under Debt Review have been paid off in full. The payment term of your debt is extended to lower your monthly installments. There are costs associated with carrying out a debt check. Fortunately, these fees are regulated by the National Credit Regulator (NCR) and are included in your repayment schedule.

For some, it can be difficult to swallow small additional service fees (such as the regulated R50 filing fee or the R300 administration fee) while in such a difficult financial situation. The real benefit of debt checking is that it can protect your assets from being repossessed by the lender. Sam was aware of these issues and endured her fair share of harassment, but now, as long as she’s on a debt check, she won’t get any legal notices or phone calls from creditors. When the debt advisor has issued the consumer’s certificate of release to service, the consumer’s records are deleted from credit agencies.

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debt check has had a profound impact on the lives of thousands of South Africans since its inception — and the process can do the same for you. The downside is that you won’t be able to apply for a loan during the debt check. The only way to end the review is to pay off all outstanding debts, except those related to car and home financing. That means credit bureaus have seven days to clear Sam’s records of all credit information regarding her debt check status. This is the only way to be rehabilitated when confronted with huge debts, and debt counseling gives you that focus.

This makes your debt more manageable and teaches you accountability, as your agreement with your debt advisor may fall if you miss a payment. We understand that it is common for you to consider a debt review if you are having trouble paying off your debt. While there are some drawbacks to consider when checking debt, it’s telling that the biggest downside is the fact that you may not qualify. People with no income are often the ones most in need of debt relief, but debt screening is not an appropriate path for them.

Fortunately, with the support and regulation of the debt review process, Sam will be able to follow her new monthly repayment schedule, will not be tempted to borrow unnecessary debt, and will see her total debt fall each month until she is completely debt-free. It’s also possible to avoid legal proceedings by being proactive and requesting a debt check once you feel that you are over-indebted. However, debt verification cannot protect you from cases where a creditor has already taken legal action against you. We’ve compiled some of the best benefits of debt checking that show how this process can improve your financial situation.

This can help you decide whether you need guidance from a debt counselor or whether you are working on improving your score yourself.

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