Are There Any Risks Associated With Debt Review?

It is often thought that debt review removes all risks associated with being in debt; however, this might not always be the case. Debt review has been proven to provide financial relief and help individuals regain control over their finances, but there are still some potential risks to consider before entering a process of debt review.

First off, one should bear in mind that engaging in debt review could negatively affect an individual’s credit score. Although any existing debts can be renegotiated or restructured through the process of debt review, lenders may perceive this as a sign of defaulting on payments which could remain visible on your credit report for several years. It is therefore important to weigh up these potential costs against any benefits you would get from engaging in debt review.

In addition, it is worth noting that taking part in a program of debt review does not necessarily mean creditors will accept reduced payment amounts or drop interest fees altogether. Creditors do have the right to refuse such requests if they are deemed unreasonable and so it is possible that even after going into debt review your overall financial situation won’t improve very much if at all.

So while many South Africans rely upon debt review when struggling financially, it’s important to remember that there can be both positives and negatives involved for those considering pursuing this option – understanding these risks ahead of time can make all the difference.

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