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Debt Rescue

Debt can be pretty intimidating and overwhelming and if you need debt rescue you might not even know where to start.

14 April 2011 · Staff Writer

 

Debt can be pretty intimidating and overwhelming and if you need debt rescue you might not even know where to start.

Debt review could be your first stop for debt rescue.

But where do you start with your debt rescue?

If you apply for debt review, you might need to make some changes to your lifestyle.  These lifestyle changes could mean the following:

Getting rid of your DSTV
Getting rid of your 3G/other internet subscriptions or going for a cheaper option
Cancelling magazine subscriptions
No longer indulging in extravagant holidays or expensive nights out

If you need debt rescue and apply for debt counseling you might have to look to rent a cheaper house or sell any vehicles that you could do without. The money will be used to pay off your debts and how the extent to which you will have to adjust your lifestyle to will depend on how much debt you have.

 If you qualify for debt counseling, your debt rescue plan can start and your debt counselor will start preparing a debt restructuring proposal to be sent out to all creditors. 

The biggest benefit from this debt rescue plan is the fact you will no longer need to pay the full installment to all your creditors.   This means the debt repayments you have will be more affordable and this will significantly reduce the stress you have to endure with creditors constantly hounding you.

 When your debt rescue plan has been kicked into place and you are under debt review, your creditors cannot take legal action against you or repossess any of your assets

The negative side of being under debt review

One of the things that people who opt for the debt rescue plan of debt review finds it hardest to deal with is the fact that you are not allowed to obtain any further credit whilst under debt review and the fact that you have to cut up your credit card.

It is also a long process and it can take a few years to clear yourself of debt completely.

However, if you are serious about getting your finances back on track and you want a debt rescue plan that will work for you, debt review is a good option.

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