Is Debt Review Good or Bad?

You, and probably a large number of people, have likely wondered whether debt review is a
good or a bad thing. This question has been asked by sceptics since it was first introduced in
2007 by the National Credit Act. For over-indebted consumers, debt review is a very good
thing. It has changed the lives of thousands of people for the better. It has rescued debt
stressed households from the edge of financial ruin. However, as with everything in life,
there are disadvantages to the process. The main disadvantage is not being able to apply
and receive credit for a good few years. But, in the long run, this is also a good thing as it will
stop you from creating more debt and revisiting the same debt scenarios, plus it helps you
stay debt free.

Benefits to you

If you are over-indebted and cannot afford your monthly repayments, you can only benefit
from choosing to undergo debt review. Speak to a debt counsellor and he or she will make
sure that you can afford your repayments again. This will be done by negotiating with your
creditors to have both your instalments and interest rates reduced. At the same time, your
credit providers will be kept satisfied as they will still be receiving payments from you, albeit
lower ones. You will continue to make these lower repayments over an extended period of
time, and you will, over time, pay back everything you owe.

The best advantage

Not being able to apply for more credit is a small price to pay, especially considering the
alternative of a default judgment and likely an attachment or garnishing order, which will
take up a large portion of your salary every month for a long time, possibly years. Or even
worse, your home and car will be repossessed and auctioned off, so your credit providers
can recover what you owe them. So, is debt review good or bad? It is clear that debt review
is an unmistakably good thing, ultimately benefitting you. It is something to consider
seriously if you want protection against your credit providers taking legal action and more
affordable debt repayments.

Need more information about debt review and how to stay debt free? Speak to One Debt