What are the disadvantages of debt review? | Meerkat | Savings, Insurance, Debt Management | Financial Solutions
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If you are struggling with paying off your debts, you may be considering debt review. It is a good idea to weigh up the advantages and disadvantages before you come to your final decision. This will help you to decide if debt review is the best choice for you.

Disadvantages

  • You will not be able to take out credit during the debt review process. This is a disadvantage for most people that are stuck in a debt spiral. However, in fact this is a benefit as it means you cannot take on further debt enabling you to pay off existing debt. This is the start of your journey to financial freedom.
  • Your repayments can be extended over a longer period. In order to reduce your monthly repayment, your debt may need to be paid off over a longer period. However, there is also a negotiation in reduced interest rates during the process which can mean you are paying off less in the long term
  • Debt review will be flagged on your credit report until the process is completed. This means that your creditors will be able to see that you are listed under debt review during the process. This does not mean you are blacklisted, in fact, when the process is complete you will have a clean record and any negative information is removed from your credit record.

Advantages

  • You can reduce your repayments by up to 50%. This is because your debt counsellor will negotiate lower interest rates with your creditors meaning you pay less.
  • Your assets cannot be repossessed and will be protected. This is because under the NCA (National credit Act) your assets are protected which you are under debt review.
  • Creditors cannot proceed with legal action and continue you to hassle you for payment. All creditors are managed by your debt counsellor on your behalf.
  • Sleepless nights become a thing of the past and you will feel relief immediately.as someone else is taking care of the process
  • After the process has been completed, you will have a clean record and further financial relief. Your finances will be in order and you can enjoy a new, stress free life.

Meerkat can help you to achieve financial freedom and help you to better your finances. Meerkat offer a confidential process for people wanting to pay off their debts at a more affordable rate. Meerkat is always looking out for you. Join the Meerkat family today!

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