It is important to understand that debt review is not necessary for everyone. However, there are circumstances in which debt review can be a helpful debt-management strategy.
If you are experiencing a financially challenging month, perhaps due to an unexpected event, and you expect your financial difficulties to be temporary, debt review may generally not be the most suitable solution for you.
However, if you expect your financial difficulties to continue for a longer period, for example, due to a change in employment or a reduction in your salary, debt review may be a helpful debt-management solution.
You may then wonder: What are the advantages of debt review?
1. Reduced Monthly Payments
Debt review is based on your affordability. This means that your income and necessary living expenses are assessed and verified to determine how much you can reasonably afford to pay towards your debts each month.
Once your income and necessary living expenses have been properly assessed, the remaining amount can be allocated towards your debt repayments.
This can help ensure that you are able to meet your essential living expenses while making affordable payments towards your debts.
2. Asset Protection
While you are under debt review, and provided that you comply with the requirements of the debt-review process and make the required payments in accordance with the restructured repayment arrangement, the legal position regarding enforcement action against your assets may provide important protection.
This can help reduce the risk of your important assets, such as your home or vehicle, being repossessed as a result of the debts included in the debt-review process.
3. Legal Protection
Debt review can also provide important legal protection against certain enforcement action by creditors in respect of debts that form part of the debt-review process, provided that the requirements of the National Credit Act are met and you comply with the applicable repayment arrangements.
This means that debt review can provide you with an opportunity to address your financial difficulties through a structured repayment process rather than having to deal with multiple creditors and potential enforcement action independently.
Is Debt Review Right for You?
If you are struggling to meet your monthly debt repayments, worried about the risk of losing your assets, or concerned about potential legal action from your creditors, it may be worth obtaining professional advice about your options.
Contact National Debt Helpline for a free consultation. We will assess your current financial position and provide guidance on the most appropriate, tailor-made debt-management solution for your circumstances.
You do not have to face your debt problems alone. Let us help you understand your options.