Can I Get Debt Review for My Car Finance?

Can I Get Debt Review for My Car Finance?

Can you get debt review for your car finance? Yes, so long as it’s not solely for your car finance. Debt review, by definition, is not for only one debt. It is meant to consolidate all your debt, not only one debt. If you would like to go under debt review solely for one auto loan, we suspect you are not overindebted and do not need to go under debt review. Debt review is not the easy way out of debt. You can’t get a reduced interest rate for just one debt.

What Can I Get Debt Review for?

Debt review is a means of consolidating multiple debts into one monthly, lower payment by negotiating with creditors to reduce either payments or interests. The good thing is that under the National Credit Act, creditors have no choice but to agree to requests for lowered fees or payments, so long as they are reasonable.

You can get debt review for auto loans, mortgages, personal loans, credit card debts, store card debt, student loan debt; the works.

Why Get Debt Review for Auto Loans?

If you’re overindebted (can’t afford minimum payments or bills), debt review is a great out. It’s the legal process of rearranging your finances to make debt repayments more affordable through negotiations with creditors for reduced interest rates and even reduced repayments. You’ll be able to afford payments while having extra room in your budget. The extra money could go towards an emergency fund, savings, paying off your debt quicker, or even towards paying bills. It helps you breathe easier and relax at night– no more nightmares about overspending and not being able to afford food.

What Happens After Debt Review?

When you’ve finished debt review, you’ll get a clearance certificate declaring that you don’t owe anyone money. It’s a piece of paper saying that financially, you are under no obligation to anybody any longer.

You should submit this piece of paper to the credit bureaus and explain that you are no longer under debt review. Then, the debt review flag will be removed from your credit report. After a few months, with careful planning and good behaviour with credit, you’ll be able to secure favourable loan terms, better insurance premiums, and even better rental and employment prospects.

How Do I Fix My Credit After Debt Review?

Fixing your credit after debt review is as easy as you make it. Of course, accessing credit will probably not be easy after debt review, but there are ways to work around this. First, get the debt review flag removed with credit clearance. Then, take out a secured credit card. A secured credit card is a card where the security deposit you put down is your credit limit. This credit works in the banks’ and your favour, because if you default they can use the deposit to recover their loss.

Spend a little bit every month and pay it back. This builds credit quickly because you spending a little bit means you have a low utilisation ratio: great for credit. Paying back the little bits on time quickly builds a positive payment history. Do this for a few months, and Bob’s your uncle: you have a good credit score.

You can get debt review for car finance, so long as it is not the only debt

If you would like debt review for an auto loan–among other debts– contact Debtco Group. We’d love to help you make repayments affordable and easy.