Is Getting a Debt Review a Good or Bad Thing?
Getting your debt and overall financial situation reviewed is never completely a negative thing, that is if your debt review turns out to have positive results.
Debt reviews in South Africa were introduced in 2007, by the National Credit Act. It left people questioning, whether debt reviews were good or bad for them.
Debt reviews have pros and cons
Debt reviews can be a positive move for those who have too much debt and are looking to settle it in some way. It is also considered positive when you would like to apply for a loan and have a credit score, as well as history, which is up to standard with the requirements of getting such a loan.
There are also, however, many disadvantages to getting a debt review.
Being active in the process of a debt review, you are not, for instance, allowed to obtain credit for a couple of years, which on a positive note, might be a good thing in the long-run, but not in short at all.
The positive side thereof also expands to becoming completely debt-free, as it will prevent you from collecting even more debt, or opening accounts and applying for loans you can’t afford at the given time.
The verdict: Is getting a debt review the best choice for you?
Depending on where you’re at with your finances, it might be the best thing for you if you’re trying to establish how much debt you have, as well as get out of it. It is also an excellent option for those who struggle to stop buying on credit.
It is thus great for those who pay their instalments each month but can’t go a month without spending the last credit freed up from their accounts, after making payments.
The great thing about getting a debt review is that your credit provider will be kept happy as they will be receiving payments from you according to your instalments, even if it is over an extended term, made possible by those who manage your debt review, or a debt counsellor.
Debt reviews are very good for anybody looking to get out of debt. It might have some disadvantages in what it allows you to do, and what not, but it will leave you feeling much better knowing that you won’t have to worry about debt going forward.