When you are over-indebted there are many options for you to choose from to help you manage your debt more easily and eventually get out of debt completely. Debt Review & Debt Consolidation are often mentioned in the same sentence, but while there might be some similarities, they are actually two completely different options.
Which is best for me? A Debt Review or Debt Consolidation?
It is really hard to make the right decision on how to get your debt under control. Below is a brief comparison on Debt Review vs Debt Consolidation.
Please contact us for more information about the different options available to you, and which will be best for your current situation.
- The process is voluntary
- You may cancel at any time
- All types of debt are allowed
- One instalment is payable on the collective of your debt, and can be reduced by up to 50% of the combined total.
- Your debt will be restructured into one monthly payment which could be reduced by up to 50% of your combined total of debt.
- You do not need your own fixed property to qualify.
- Almost no waiting period is necessary when getting a deb review. A debt review is fast and takes affect immediately. Your reduced monthly installment will be payable in your first month already.
- You are almost immediately protected against legal action from creditors.
- As defined in the national credit protection act, You are protected against blacklisting.
- Interest rates stay the same, but might be reduced in some cases.
- You can only qualify if you own a fixed property
- Your debt will be combined into one loan which will allow you to pay one monthly payment based on your total amount.
- The process can take up to 3 months before reduced payments are effective.
- You will not be protected from creditors and blacklisting at any stage.
- This will be seen as a new loan, and therefor cannot be canceled before the total has been payed off in full.
- Debt Consolidation loans can be very expensive with higher interest rates.