to get a debt review loan

How to get a debt review loan

How to get a debt review loan

The short answer here is that you cannot get a loan during a debt review for the simple reason that during a debt review your credit profile will be flagged by all credit bureaus and this will prevent responsible lenders from approving your loan application. as soon as they find out that you are currently over-indebted and are renegotiating the terms of the debt because you are already struggling to pay off your debts. Whenever someone applies for a loan, reputable lenders are required to check your credit history before proceeding with your application. If they work with the NCA and NCR, they will reject your application as soon as they see your credit status.

As stated in the National Lending Act (NCA), if a bank or lender approves a r15000 loan application from a debt review candidate, they are guilty of reckless lending. The NCA states that no one subject to debt review is eligible for additional loans until they complete the debt review process and are no longer over-indebted.

Big Promises for Quick Decisions – Unscrupulous Sellers

Sometimes consumers subject to debt verification are approached by vendors willing to offer them credit if they can avoid verification. This is a reckless course of action as these sellers do not act according to the NCA or NCR and are only interested in their commission. Because of this, they are likely not fully aware of all the legal implications for you. By leaving debt consideration in line with this advice, you are effectively burying yourself in a big debt hole that you may never get out of.

Unscrupulous creditors

A debt check is an important decision a consumer must make, and a consumer undergoing a debt check often finds it very difficult to adjust to their new lifestyle where they spend only the money they have and no longer rely on credit. Many consumers tend to quickly abandon their debt review and return to living on credit to keep up with living beyond their means and maintaining a certain lifestyle. Desperation may be the reason consumers turn to loan sharks when considering debt, the struggle may be overwhelming for some people, but making this mistake could mean their entire financial future is at stake.

Moneylenders do not operate in accordance with the necessary rules and in a sense outside the law. They will not be regulated by the NCA or NCR, so the protection offered compared to what is under consideration is nil. Sharks will offer you short-term, high-interest loans to solve the problem quickly, causing interest rates to rise and you to pay back much more than you originally borrowed.

The National Credit Law governs the debt review process, and the National Credit Regulator enforces the process. The NCA specifies that consumers subject to debt verification are prohibited from applying for credit while they are still over-indebted. No one will be able to safely turn to a registered lender, which means that the lenders who are left behind and can make loans under these circumstances are loan sharks.

Last Updated 14.05.2022
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