Why is debt review better than a debt consolidation loan?
Debt review and debt consolidation are personalised debt management solutions. The choice on which one to use and which one may be more beneficial, is dependent on your personal debt situation.
Ask yourself the following questions:
1. Are you experiencing financial problems?
2. Are you struggling with debt and loan repayments?
3. Are you accounts in arrears?
If you have answered yes to at least one of the above questions, then either debt counselling or debt consolidation may be the answer for you. Deciding which one is better, is generally the hard part.
Debt review, one of DebtBusters viable debt solutions, allows you to consolidate your debt without having to take out a loan. Whereas, the process of debt consolidation requires you to combine all your debts and take out a loan, to cover those debts.
With the process of debt review, DebtBusters will assess your financial situation and find the best possible way to restructure your debt. DebtBusters will negotiate your debt repayments with credit providers on your behalf.
Your debt repayments will be consolidated into one monthly repayment, which you will pay to an NCR regulated payment distribution agency.
The payment distribution agency will pay all your credit providers on your behalf. DebtBusters will also ensure that your debt repayment terms are extended. Your bad credit records will be rectified once your debt repayments have been made.
Debt review can be considered as a better debt management solution as it can help a much wider variety of South African consumers.
If you as a consumer, have missed previous debt payments or have had legal action implicated against you, then a debt consolidation loan will not be an option, as no credit provider will lend you money at a reasonable interest rate that will be affordable to your specific financial situation.
Many debt consolidation loans have high interest rates, which will inevitably deteriorate the client’s financial situation.
For debt consolidation to work, consumers have to be sure that they are able to afford the monthly installment every month. This can only happen if the consumer manages to secure a loan at a lower interest rate than they are currently paying on the debts they wish to consolidate.
Because over 90% of DebtBusters clients receive acceptances for lower interest rates and lower monthly repayments, the debt review process stands as a much safer option than debt consolidation.