While more people are relying on personal loans to see them through financially challenging times, a significant amount of people are also struggling to repay their debts. This often leads to a downward spiral when people lose control of their debt and fail to pay their creditors.
The amendment of the National Credit Act in 2005 came along with new regulations introduced as a measure to protect consumers. One of the measures introduced was the debt review process.
Debt review is a debt management process that is designed to restructure debt payment plans so that consumers are able to settle their outstanding debts. When individuals are under debt review, the idea is for clients to avoid increasing their debt. The debt review process is governed by the National Credit Act and enforced by the National Credit Regulator.
As a result, it can be quite difficult to get a loan while under debt review.
If you are looking for loans for people under debt review, you may face quite a number of challenges. Mainstream banks or lending institutions are unlikely to provide you with a loan if you under debt review.
Loans for people under debt review are often offered at a higher than normal interest rate, because these individuals are generally regarded as high-risk clients.
If you are in need of cash for expenses it would be best to contact your debt counsellor and arrange for a restructure of your payment plan if possible. In some instances you may be able to get a debt consolidation loan while under debt review. You may also be able to get access to a payday loan as long as you can prove that you are employed. You may need to provide some sort of security for the loan.
