Signs You Need Debt Review

Debt is an overwhelming force that can take over your life. One minute you’re excited you just got a credit card, then a personal loan, a mortgage for the house you’ve been eyeing, vehicle finance for the car you’ve wanted, and then it all adds up: the interest, fees, repayments – and the weight of your financial life comes crashing down.

Suddenly, you may find it tough to balance repayments with expenses like school fees, utility bills, and more. You may take out loans to make repayments, pay one creditor one month and another the next month, or see your credit score tank. All of these are symptoms of the need for debt review.

Debt review is a legal process wherein a debt counsellor negotiates for reduced repayments, lower interest rates, fewer fees, extended repayment periods, and postponed repayment dates on your behalf. Under the National Credit Act, no creditor may take legal action against you (such as seizing your assets or petitioning for an emoluments attachment order) once you’re under debt review.

The process usually takes about three to five years, depending on your repayment capacity (how much you can afford in repayments each month). After your accounts are no longer in arrears, your debt counsellor will award you with a debt clearance certificate, which you can submit to the credit bureaus to expunge all records of debt review and the debts that necessitated it from your credit record.

This post discusses signs that you need debt review (are over-indebted) and how debt review can help you overcome these hurdles.

Let’s dive in!

Signs You’re Over-Indebted

The top two most glaring signs you’re likely over-indebted include taking out loans to afford repayments and failing to balance repayments with bills and necessary expenses.

Taking Out Loans to Afford Repayments

Taking out loans to finance debt repayments is a surefire sign you’re over-indebted. The higher interest rates that result from having a high credit utilisation ratio (how much credit you use compared to the total amount you have available) will likely further indebt you, making becoming debt-free harder in the long run. Though taking out finance to afford repayments may seem like a great solution in the short term, it’s usually another kick in the gut to your finances.

Debt review can assist with helping you afford repayments by reducing payments and lowering interest rates.

You Can’t Afford to Pay Bills and Necessary Expenses

If your repayments have debilitated your ability to afford to pay for utilities, school fees, and other everyday expenses, it’s time to seriously consider debt review.

Your debt counsellor will work with you to remap your finances and make a new budget that includes your new, lowered repayments and interest. This way, you’ll be able to pay your bills with ease.

Let Credit Rehab Assist

Our team of debt counsellors and debt help system experts would be delighted to help you break free from over-indebtedness. Let us negotiate reduced repayments, lower interest rates, fewer fees, extended repayment periods, and postponed repayment dates on your behalf, helping you break free. To learn more, contact us today.