Debt Review vs A Debt Consolidation Loan

If you are experiencing financial problems and struggling with debt repayments, there are a few options available to you. Instead of struggling through piling debt and eventually wearing your bank account too thin, you can apply for a personal debt management solution to help solve your debt problems. Debt management solutions can come in the form of a debt review or a debt consolidation loan. Did you know there is a difference between debt review and debt consolidation? Each has its own benefits, and the one that helps your needs the best will depend on your personal debt situation.

The difference between debt review and debt consolidation

Both debt review and debt consolidation are debt management solutions that can be personalised to your individual financial situation and needs. The two terms are sometimes used synonymously, but there is a difference. Debt review is a process that is handled by professionals to manage your debt repayments, allowing you to consolidate your debt without the need to take out further loans. Debt consolidation involves taking out a loan yourself that helps you repay all your debts. If you have missed previous debt payments or have had legal action implicated against you, credit providers will not easily lend you the money for a debt consolidation loan. If they do, the interest rates may be higher than you can afford, making your debt situation worse instead of better. For most South Africans, debt review is a much more viable option, since no additional loans are needed.

The benefits of debt review

Professional debt review with One Debt is a fantastic option for anyone struggling with debt repayments. One Debt will assess your financial situation and restructure your debt in the most affordable way. We can ensure that your repayment terms are extended and will protect you from any legal actions while you are under debt review. We will negotiate your debt repayments with all your credit providers on your behalf and consolidate all these repayments into one monthly repayment that you need to make. A payment distribution agency will then disperse this amount to your individual creditors for you. As soon as your debt repayments are completed, we will rectify your bad credit records. For comprehensive debt review, contact One Debt today.