Loans for debt review clients and advice on how to get out of debt review fast
Can You Take Out a Loan Under Debt Review?
If you’re undergoing debt review, you’ve been officially declared over-indebted. That is, your income, minus the cost of living, is less than your expenses.
Obtaining home loans for debt review clients is almost impossible you will probably have the same challenges when buying a car under debt review, we are the experts in getting you off the debt review program,The debt review status on ITC will prevent you from ever qualifying for a loan again until it is cleared you’re not allowed to take out any more loans (as per the National Credit Act – NCA). Reason being, this would be considered reckless lending. Many consumers are unaware that voluntary withdrawal from debt review does not automatically clear their ITC status as being under debt review, for as long as the status is still showing debt review you will be unable to qualify for any credit
The point of undergoing debt review, is to become debt-free and be rehabilitated back into the credit market. This is difficult, if not impossible, if you keep adding to your debt. The debt review process includes negotiating a “single provisionally reduced monthly installment” that is more affordable. It entails an extended payment period so, in effect, you will be in debt for a longer period of time. During the debt review period, you’ll be unable to apply for any more credit with any traditional (and reputable) financial institutions.
If your financial circumstances change, or you have only a home loan or other large credit agreement remaining (that is not in arrears) under the debt rearrangement order, you can apply to rescind a debt review court order.
You’ll have to demonstrate to the court your financial affordability to repay the original outstanding amounts once an application to rescind the debt review order has been made. If you’re found capable of making payments directly to the outstanding creditors, outside of the debt rearrangement order, the debt review court order will be rescinded.
At this point, if you’ve paid all the short-term loans included in the rearrangement in full, you will be issued with a clearance certificate from your debt counsellor. This allows you to re-enter the credit market. The credit bureau will also be able to remove the negative payment profile history on the affected accounts.
You’ll now be able to apply for a consolidation loan. If you only have secure debts like a home loan or car finance to pay off, however, this won’t be necessary. The secure interest rates are unlikely to be higher than that of a consolidation loan. In other words, you’re already better off.