Debt Review Loans For South Africans
Debt review loans can make a massive difference to a person’s life. Debt review, otherwise known as debt counselling, is a process in which people undergo review when they are unable to pay their creditors any longer. Undergoing debt review will keep you and your possessions off any creditor’s radar. But what exactly is a debt review loan? Is it a consolidation loan? In short, no. We will be discussing the function and necessity of a debt review loan below and discuss how this can help you in your time of need.
Debt Review Loans vs. Debt Consolidation
Many people confuse debt review loans with consolidation loans. This is understandable since the two operate very similarly. A debt review loan is a type of consolidation loan. By taking out a debt review loan you will subsequently be paying off all of your outstanding loans from various creditors using your loan amount. You will then pay off that one loan for the agreed upon time period. However, where a debt review loan differs from a consolidation loan is that you will be protected from aggressive creditors being able to contact you. A debt review loan is agreed upon by both the creditors, yourself, your debt counsellor, and ruled as final by a court. Creditors cannot approach you hereafter as your debt with them will essentially be settled.
Another difference between the two types of loans are the types of people who would apply for them. A consolidation loan is taken out by a person who has a handle on their finances and merely wants to sort all payments into one source. A debt review loan will require the individual to be undergoing debt counselling.
The Benefits Of This Type Of Loan
A debt review loan can get you out of a really bad financial situation. Consolidating your debts has a number of advantages. Some of which we will discuss below.
- Simplicity: by consolidating all your debts, you are making life a lot simpler for yourself. Instead of having to monitor numerous creditor accounts, you will be able to simply pay one fee per month. This will help you to stay financially secure as you never need to miss another payment again.
- Safety: by making use of a debt review loan, you are ensuring that none of your assets will be repossessed by various creditors. Keep your assets close and never fear of your family being stripped of their means because you couldn’t afford to make a payment.
- Peace Of Mind: by consolidating all your debts, you will be able to rest easy knowing you will no longer be continuously harassed by various creditors. You will only need to honour your one debt from there on, leaving you free from any stress caused by creditors in the past.
- Affordability: another massive plus to a debt review loan is the fact that you will actually be able to reduce your monthly instalments. You can discuss a period you are comfortable paying off. The longer the period, the lesser the monthly instalment. But remember, the longer the period, the higher the interest. Thus, choose the most realistic, affordable payment for you each month.
When To Apply For A Debt Review Loan
Knowing when to apply for a debt review loan runs along the same principals of knowing when you should apply for debt counselling. In a nutshell, if you are unable to afford your monthly expenses with your income, then it is time to seek counsel. We at National Debt Advisers will then take your situation upon our shoulders, and do our best to help you overcome the situation you have found yourself in.
Reach Out Today
All it takes is one conversation. Let the National Debt Advisers help you through your time of need. Explain your predicament, and we will then work out the best, most cost-effective way for you to pay off your creditors. You do not need to stress over your debts any longer. So long as you have the help of the National Debt Advisers on your side. Give us a call today and reach out for the help you need.