Where can i get a loan if i am under debt review
If you're wondering whether you can obtain further loans while undergoing an active debt review, I'm afraid the answer is no. When you're flagged as "Under Debt Review", this information will be displayed across all credit bureau systems. So, when you apply for a loan from another financial institution, they will see the flag during the processing of your loan application, and unfortunately, your application will be rejected.
It's important to understand that the National Credit Act has guidelines in place to prevent financial institutions and credit bureaus from lending money to people who are already over-indebted. If these institutions lend you money while you're under debt review, they will be guilty of reckless lending.
It's also important to understand that your credit rating is affected by how well you repay your debts. If you make your payments on time, your credit rating will remain positive, which is a sign that you are a trustworthy person who pays their debts as scheduled. However, if you miss one or two installments, your credit rating will fall, indicating that you have poor credibility, and lenders may have a hard time retrieving money from you.
If your credit rating falls below a certain threshold, you will be selected for a debt review by the NCA. This means that you are over-indebted and cannot pay your debts at all. During the debt review process, you will receive counseling and education on how to settle your debts smartly.
Before taking out any loan, it's important to carefully consider your ability to repay it. Taking on more debt while under debt review could make your financial situation worse. So, it's better to wait until you've resolved your current debts before considering taking on any new ones.
If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice.
Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.