Thank you for your question.
What one must keep in mind is that debt review not only aims to get you debt free. But also to get you “rehabilitated” into the credit market.
“Rehabilitation” is once you’ve brought all arrears up to date and are able to meet all your credit agreements according to the original contractual rate. This include the original interest rate, the original instalment amount etc. Should you exit the debt review before your debt has been settled (reaching the point of “rehabilitation”), a clearance certificate cannot be issued.
When a debt review is cancelled, the original credit agreement is revived, and the creditors are free to proceed to enforce their rights in terms thereof. That is why we urge consumers not to cancel without making prior arrangements with creditors. We often assist them to do so. First reach a written agreement with the creditor about the capitalisation of all payments in arrears and the resumption of the original instalments before cancelling your review and losing your protection.
If you’re already struggling to afford your existing payments you will most definitely not be able to qualify for, or afford, a consolidation loan. Consolidation does not solve your debt problem. It only moves the debt from one place to another. We are not fans of debt consolidation as a solution to debt problems for the following reasons:
– It is further credit.
– Consolidation loans are expensive.
– Consumers sometimes consolidate debt and then just borrow further after that. Ending up in bigger trouble than when they began.
– Few people qualify for a consolidation loan.
You are welcome to get in touch with us if you are dissatisfied with your current debt counsellor. You can contact us at 0861 100 999 / [email protected]. Alternatively you can fill out our quick and easy online contact form found here: https://www.debtsafe.co.za/contact-form/ and one of our consultants will contact you soonest.
Hope the information was useful.