A debt review is not a solution to your debt problem, but it does help you get out of it more easily and faster. Getting into a debt trap is easy; it is coming out of it that’s hard. The only good solution to a debt-ridden situation is paying the money owed in full.
That, however, can sometime prove mighty difficult, especially if the amount owed is seriously high and/or your current income is not enough to support you and also pay off the debt. This is where a debt review can make your life so much easier.
What’s a debt review?
It is exactly what it name says: a review of your debt and current financial situation by a consultant. A debt counsellor takes stock of your current debts, daily expenses, and current financial standing to ascertain if you can pay off the debt.
If you cannot, the counsellor devises a new repayment plan, one which you can stick to and which the creditor is also likely to accept. Finally, the counsellor submits the repayment proposal to the creditor for approval.
What are the benefits?
Some important benefits of a debt review are as follows:
- It helps you understand your financial situation better: It is not uncommon for a debtor to be unsure about his repaying capacity. Undergoing a review helps you understand whether you can repay the loan in its current terms or not. More importantly, if you cannot repay, it offers you a solution.
- It helps you find a solution to your debt problem: Through a debt review, your counsellor reconstructs your debt—maybe by reducing the instalment amount or extending the repayment period—so that you can repay the loan as quickly as possible and with least inconvenience to you.
- It obviates any legal action to you: Your creditor can take a legal action against you if you’re struggling to pay off your debts. This, however, is something that the creditor can’t do if you are undergoing debt counselling. According to the National Credit Act (NCA), creditors can’t legally pursue debtors undergoing debt counselling.
- It prevents you from being blacklisted: When you’ve outstanding debt against you, your credit rating can quickly drop down, so much so that you might end up getting blacklisted. With that said, you cannot be blacklisted (again, NCA protects you) if you are undergoing debt counselling.
- It ensures you don’t have to communicate with your creditors directly: Once you enrol into debt counselling, your adviser takes on the responsibility of corresponding with your creditors on your behalf.
With so many benefits of debt review, it makes sense to seek help of a reliable debt counsellor. Contact One Debt today and become debt-free fast, super fast!