Disadvantages of Cancelling a Debt Review
Debt review is often described as being another form of debt counseling. It is both a service and solution that rehabilitates consumers that are over-indebted to the point that their assets are at stake.
If consumers fail to repay their debt, credit providers can threaten consumers with regular calls or letters. In worst case scenarios, credit providers may even go as far as taking legal action against consumers or repossess their assets, including their car or house.
Debt review is a very good solution to all your debt problems and will assist you in helping you repay all that you owe to your credit providers in a legal and effective manner. Should you comply with the rules every step of the way and not skip payments, you’ll be able to clear your name from debt successfully.
Can You Cancel a Debt Review?
Before the National Credit Act introduced debt review as a debt solution in South Africa in 2007, citizens of the country were able to cancel debt counseling. However, since the Act has been instated, debt counselors are no longer permitted to terminate, nor withdraw their clients from debt counseling, until the process is concluded.
The fact that consumers cannot cancel the debt review process, serves as both an advantage, as well as a disadvantage.
It serves as an advantage because it forces consumers to take responsibility for repaying their debt and doing so in a faster and more effective manner. This doesn’t only aid in helping the consumer, but it also helps South Africa to resolve its debt crisis, as too many people enter into debt that they cannot afford, resulting in residents accumulating millions of Rands in debt, without being able to repay their credit or loan providers.
Not being able to cancel a debt review, is moreover, also a bad thing, as you cannot simply find an alternative method to repay your debt. Once you enter into a debt review, you are bound to finish it.
That is why most people remain skeptical of entering into it, regardless of the advantages debt review offers, and the success it’s had in the past.