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Should I Consider Debt Review? Exploring the Pros and Cons

What is Debt Review?


One of the debt reduction options accessible in South Africa and stipulated in the National Credit Act is debt counselling. This procedure aims to help consumers who are overindebted and experiencing financial difficulties by offering budget guidance, negotiating lower payment terms with credit lenders, and restructuring debt.


Pros of Debt Review


  • While enrolled in debt counselling, you are protected from legal action by creditors.

  • There is just one payments due each month.

  • You promise never to spend more than you can afford.

  • A debt counselor will make recommendations for cost- and money-saving measures.

  • Your creditors won't phone you to demand payment any more.


Cons of Debt Review


  • While receiving debt counseling, you are not permitted to obtain more credit.

  • It does have some financial costs, but those are regulated by law.

  • Paying less money each month could result in your debts taking longer to pay off.

  • It will be impossible for you to use any credit cards or retail store cards.




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