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Exploring the Debt Review Process

The debt review process can feel daunting to many. When you get to the point of needing to embark on the process, your financial health has likely taken a knock. In such an instance, a qualified debt counsellor will examine your finances and negotiate with creditors on your behalf during the review process. By considering your overarching financial situation and the various expenses that need to be paid, they will create a tailor-made plan to ease your monetary stress. This can get you back on track and transform your future relationship with money. In the following article, we explore the pros and cons of the process, so that you can make an informed decision.

Pros of Debt Review 

The real benefit of embarking on this process is that it will enhance your financial health and prevent creditors from repossessing certain assets. Qualified counsellors can also liaise with creditors to get you the best possible repayment plan. In many instances, this can reduce your monthly payments. Once you embark on the review process, you also gain legal protection and no longer have to stress about angry calls and letters. Undeniably, this diminishes stress and enhances emotional well-being – an often neglected yet greatly affected part of being in debt. So, in summary, the pros include:

  • Not having to deal with creditors directly
  • No more angry letters or calls
  • Reduced monthly payments
  • A clear plan that takes financial obligations into account
  • Diminished stress
  • Better financial health in the future

Cons of Debt Review 

Here at FreeMi, we believe that the pros of debt review far outweigh the cons. One of the fundamental cons of the process (which some may actually see as one of the pros) is that while under review, you cannot get more credit. When you work with a qualified counsellor, they will ensure that your non-negotiable monthly payments (such as rent, medical aid, and other direct debits) are factored into the plan. While this might feel daunting for some individuals, it can actually safeguard finances and get you back on track.

Chat with our qualified team today if you want to reduce stress and redefine your relationship with finances. You can access our support with total anonymity. We will analyse your finances and create a bespoke plan for your particular needs. Feel free to contact us here, and we will happily advise you on the best steps going forward.