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If you’re under debt review, obtaining credit is not easy. However, there are solutions that can help you regain financial stability. One such solution is Real Estate Assist, which helps you to unlock equity in your home to settle debt and get back on track.
Many people who have taken the initiative to undergo debt review often find themselves in need of additional cash. It can be tempting to take out a loan from unethical lenders.
Unsecured loans
Getting a loan while under debt review can be challenging but it’s not impossible. In fact, many people in debt find that their borrowing options improve once they’ve completed the process. This is because their credit score will rise and lenders will stop contacting them about unsolicited loans and credit card offers.
One option that’s available to debt review clients is an unsecured personal loan. This type of loan doesn’t require any assets as collateral, and it’s based on the borrower’s credit history and ability to repay. This type of loan can be used for a variety of purposes, including paying off medical bills or making a large purchase. It’s important to carefully consider your options and choose a lender that provides affordable rates and fees.
It’s also worth mentioning that the National Credit Act requires creditors to keep track of consumer debt accounts and to lower outstanding amounts. Therefore, if you’re still under debt review, it’s best to wait until the process is over before applying for a new loan. Otherwise, you could be charged with reckless lending. Also, remember that if you default on your loan, the three major credit reporting agencies will be informed and may send your account to collections. This could have serious consequences for your credit score and financial future. It’s important to seek professional advice if you need help with your finances.
Short-term loans
A short-term loan is a good option for debt review clients who need cash quickly and don’t have time to wait for a long repayment term. These loans are smaller sums of money that must be repaid in a few months or less, and you can apply for one online. You can also compare loan offers from various lenders before choosing one. This process usually takes about an hour and doesn’t affect your credit score.
Some lenders offer short-term loans for debt review clients who have bad credit. However, this type of financing can be risky loans without salary slip because it comes with high interest rates and fees. In addition, these loans can trap you in a cycle of debt that’s difficult to break out of. Before applying for a short-term loan, be sure to research the lender carefully and make an informed decision.
A debt review is an excellent way to help you manage your finances and reduce your outstanding debts. During the process, your creditors must stop attempting to collect payments from you and your debt counsellor will work with you to create an affordable repayment plan. Once your debt is cleared, you can begin to rebuild your credit. You can then consider taking out a personal loan to pay for expenses or make a major purchase. Be sure to compare your options carefully and choose a lender with low rates, fees, and terms.
Payday loans
Payday loans often come with astronomical fees and can accumulate quickly. When cash-strapped borrowers are unable to repay the loan at its due date, they will typically return to the lender and ask for a repayment extension, which is known as rolling over the debt. This often increases the borrowing costs exponentially. A consultation with a nonprofit credit counselor can help you weigh your options, and legal aid offices can assist with understanding your debt-settlement rights if you qualify.
Alternative lenders
Despite the myth that “people under debt review won’t qualify for a loan,” it is important to remember that there are options available. Many lenders in Gauteng are willing to lend money to people who are under debt review, provided that they can demonstrate that they are making payments on their debts. However, it is essential to do your research before applying for a loan. Ask your network for recommendations and read reviews online to ensure that you are working with a reputable lender.
If you are a debt review customer looking for an unsecured personal loan, it may be best to opt for a short-term loan. These loans are typically repaid in a few months or less, and can be useful for paying for expenses such as a home renovation. In addition, they can provide a bridge to growth for small businesses that need a cash infusion.
In addition, alternative lenders offer a quicker application process than traditional banks. In many cases, you can go from application to funding in just a few days. Additionally, some lenders are focused on serving markets that are overlooked by the big banks, such as software-as-a-service companies. Lastly, they often offer more flexible underwriting terms.
