Debt Review – Should Home Loans be Excluded?
Is it possible to exclude certain loans such as home loans from debt review?
Although it is possible to exclude home loans from a debt review process, Debt-911 debt counsellors recommend that all debts be included in the debt review process. The National Credit Act stipulates that all credit debt agreements be included in the debt counselling process. This will reduce the possibility for over indebted consumers to lose their homes and other hard won assets.
Debt-911 will draw up a detailed monthly budget.
Once Debt-911 counsellors have drawn up a detailed monthly budget and renegotiated a consumer’s monthly debt repayments, a court will be approached to ensure the consumer is protected from his creditors while he pays off his reduced monthly debt repayments. It is important not to default on one’s monthly debt repayments while under debt review.
The debt review process will often result in reduced interest rates and extended payment terms being negotiated, giving the over indebted consumer a lifeline by temporarily reducing their monthly mortgage repayments thus freeing up some much needed cash to cover living expenses. Generally mortgage repayments while under debt review can be reduced to approximately 80% of it’s previous level. This also has the effect of extending the repayment period by an additional 20%.
Once your unsecured debt has been cleared your home loan repayment can revert to their previous levels.
Once a consumer’s unsecured debt obligations such as store card, credit card debt, vehicle finance and personal loans or overdrafts have been eliminated – usually within 36 months – the home loan can revert back to it’s pre debt review levels and the consumer can continue paying off his home loan as normal.
Debt-911 counsellors will, as a matter of course conduct a personal financial assessment to determine whether it’s clients have been the victims of unscrupulous lending practices, which if proven, can result in certain portions of the debt being written off.
Explore Your Debt Review Options.
Debt-911 counsellors guide and assist clients through each step in the debt review process.
If you find yourself thinking about how you are going to meet your monthly repayments, simply call us, SMS Help to 40935 or fill out the form alongside and one of our trained debt counsellors will call you to assess your personal situation and give you free advice.