A Fin24 reader currently under debt review wants to know if it is possible to get a loan. She writes:
I'm under debt review; is it possible to get a loan?
Neil Roets, founder and CEO of Debt Rescue, responds:
Debt counselling is a process whereby an over-indebted person repays their debt in a manner that is more affordable, by reducing instalments and extending the repayment terms. Therefore, if a person were to incur further debt, they would not be able to become debt free.
When you apply for debt review, a new budget is created to ensure you have sufficient living expenses - therefore not requiring credit. By law you are prevented from accessing any further credit when under debt review, to enable you to repay the debt you have.
Questions may be edited for brevity and clarity.
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