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. In this article, we’ll discuss the “Debt Review vs Consolidation” debate. People often use these terms 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.

Debt Review

• The process is voluntary
• You may cancel at any time
• It caters for all types of debt
• You pay one instalment on the collection of your debt
• We will restructure your debt into one monthly payment which could be down to just 50% of your combined total
• 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.
• The National Credit Act protects you almost immediately against legal action from creditors
• The National Credit Protection Act also protects you against blacklisting
• Interest rates stay the same, but your debt counsellor may be able to reduce it

Debt Consolidation

• 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 have protection against creditors and blacklisting at any stage.
• This is technically a new loan and you can therefore not cancel it before you pay off the total amount
• Debt Consolidation loans can be very expensive with higher interest rates.