A Clear, Structured Plan
Unlike when you were stuck in debt with no way out, debt review provides a clear road map for becoming debt free. You know exactly how much you need to pay and when you will be debt free, which helps to eliminate uncertainty and gives you a sense of control over your finances.
Protection from Legal Action
One of the immediate benefits of being under debt review, is that creditors cannot easily take legal action against you while you are complying with the plan. If they do, you can easily fight back and win. This legal protection helps reduce stress and gives you peace of mind.
Better Money Management Habits
Being in debt review often requires better budgeting and financial discipline. It involves working as a household to get out of debt. The skills you develop during the debt review process can benefit you long after you’ve paid off your debts, helping you to avoid future financial pitfalls.
Lower Monthly Payments
For most people this is the biggest benefit. The debt review process restructures your debt so that your monthly repayments are more affordable, which can ease the burden on your finances. Instead of juggling high payments to multiple creditors, you have a consolidated, manageable plan.
Reduced Interest Rates
Another fantastic benefit is that, through negotiations, many creditors normally agree to lower interest rates and cut fees. This is an amazing benefit over time. And the longer you are in debt review the more you benefit. This means you pay less interest over time, and more of every payment goes directly toward settling the principal balance.
Avoiding Further Debt
What might later seem to some like a trap is actually a huge protection. Since debt review limits your ability to take on new credit, it prevents you from falling into the trap of running out and getting more debt, it can help you break the cycle of using credit to pay credit. We all know we are kind of addicted to debt and this stops us falling off the wagon.
Rebuilding Your Credit Score
Missing payments regularly can mess up your credit worthiness. Successfully completing debt review will eventually help you rebuild your credit score. While you may be flagged during your debt review, completing the process shows that you have responsibly paid off your debts, and over time, this will reflect positively in your credit profile.
Achieving Financial Freedom
The ultimate benefit is that you will be debt free at the end of the process. This is the destination we have been talking about. Achieving that freedom then allows you to manage your finances without the burden of creditors or the pressure of unmanageable payments. It is the ultimate fresh start, and enables you to now start working on building wealth instead of making credit providers rich.
An Expert By Your Side
Dealing with debt on your own can be hard. We sometimes look around for the adult in the room only to realise that it is us. It’s hard to know what to do and how to avoid mistakes. So, during debt review it is really great to have an expert at your side to point you in the right way. It’s like a good travel companion who helps you stay awake when your eyes get heavy.