06 May Can I Get a Consolidation Loan Under Debt Review?

A question we get often at Debt Refinance: “Can I get a loan under debt review?” The answer: yes and no. Bad financial health can be really tricky to remedy, and new credit and loans can be the one thing that helps when we’re out of money and have nowhere to turn. Read on to discover whether you could get a loan while under debt review and if it’s worth it, plus alternative income sources you can try instead.

Why the answer is probably no

Legally, creditors are not allowed to lend money to people under debt review. This is because it’s considered reckless lending, and the creditor would be liable for whatever you don’t pay back. It’s also against the law.

…and why it could be yes

There is one loophole you could ask your debt counsellor to consider. In the National Credit Act, Section 88 (3) explains that written permission from your debt counsellor and credit provider could override the usual rules under exceptional or unforeseen circumstances.

Section 88(3) of the NCA says:

“If a consumer under debt review needs credit to satisfy any unforeseen or emergency expense, or the cost of maintenance or repair of a necessary household appliance or motor vehicle, the consumer may, with the prior written consent of the debt counsellor and credit provider, obtain credit to satisfy the expense.”

Exceptions could be debt review and legal fees, a broken car, rent and other living expenses you can’t satisfy, emergencies or previously approved loans. An emergency might be unexpected medical costs or unsuspected job loss.

What you could do instead of getting a loan

You’ll probably only get a loan under exceptional circumstances like your child going into a coma or a zombie apocalypse. Yep, it’s that hard to get loans under debt review. You never know until you try, though, so be sure to ask your debt counsellor if you’re in desperate need of a loan.

Alternative income

There are lots of ways you can make extra money if you need it, but they require determination and hard work.

• Teach English online
• Social media management online
• Get a customer service or technical support job
• Tutor children or provide childcare
• Detail cars

Try to find or create a side hustle instead of taking out a loan.

Ask a partner, close friend, or family member for help

Everyone needs a hand sometimes, and the people who love you would likely gladly help you in your time of need. Reach out to someone you trust and explain your situation, asking for help. You never know until you try, right?

Now that you’re clued up on everything you need to know about debt review and taking out a loan, contact Debt Refinance for loan consolidation. We’d be glad to be of service.