Debt review is a process that helps consumers manage their debt and get back on track financially. It is regulated by the National Credit Act (NCA) and is designed to protect consumers from reckless lending. Under the NCA, consumers who are under debt review are not allowed to enter into any new credit agreements. This means that any credit provider who provides credit to a consumer marked as under debt review is considered to be engaging in reckless lending.
Debt review can be a great way for consumers to get their finances back on track. It involves budgeting, debt consolidation, and debt counseling. It can also help consumers improve their credit score and access better loan terms in the future. However, it is important to remember that while under debt review, consumers cannot apply for new credit. If you are considering applying for a loan while under debt review, it is important to understand the risks involved.
Not only could you be engaging in reckless lending, but you could also be putting yourself in a worse financial situation. It is important to speak to a financial advisor or debt counselor before making any decisions about applying for credit. There are many resources available to help consumers understand their options when it comes to debt review. The Meerkat blog offers helpful advice and tips on budgeting, savings, and financial education. Debt rescue companies can also provide assistance with debt counseling and debt consolidation.
In conclusion, it is not possible to apply for credit while under debt review. This is because it is considered a form of reckless lending and could put you in an even worse financial situation. It is important to speak to a financial advisor or debt counselor before making any decisions about applying for credit.