Is debt review a good idea?

Debt can be a heavy burden to carry, impacting your finances, credit score, and overall well-being. If you're feeling overwhelmed by debt, you might be considering debt review as a potential solution. But is debt review a good idea?

Debt review, also known as debt counseling, is a formal debt-restructuring process designed to help individuals manage their debt more effectively. It involves working with a debt counselor to create a structured repayment plan that is more manageable based on your income and expenses.

One of the key benefits of debt review is that it offers legal protection from creditors, meaning they cannot take legal action against you while you are under debt review. Additionally, debt review can provide a sense of relief and reduce the stress associated with managing multiple debts.

However, it's important to weigh the pros and cons before committing to debt review. While it can provide immediate relief, debt review may have long-term implications on your credit score and access to credit. It's also crucial to ensure that you work with a reputable and accredited debt counselor to avoid potential pitfalls.

In conclusion, debt review can be a helpful option for those struggling with unmanageable debt, providing a structured approach to repayment and legal protection from creditors. However, it's essential to carefully consider the long-term impact and seek guidance from financial experts before making a decision.

​​If you have any questions about debt you currently have, please feel free to reach out to a member of the Libertine Consultants team. We are here to provide you with judgement-free support and advice. 

Need advice? We can assist with that too! Submit your inquiry to us via email advisors@libertineconsultants.co.za and we will provide you with sound insights on the best way forward. In the meantime, keep an eye on our YouTube channel to get more practical advice on managing the financial stress of the pandemic.