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Time To Upgrade Your Old Car?

If you are in debt review, you are already taking a strong step toward becoming debt free.

Over time, as your finances improve, it is natural to start thinking about bigger expenses again, like upgrading your car.

But before you make any plans, it is important to understand how debt review works and why taking on new debt during this time is not allowed.

Debt review is designed to help you repay what you already owe in a structured and affordable way. Because of this, you cannot take on new credit while under debt review, including car finance.

Credit providers will not approve new loans while you are still repaying existing debt through a court approved plan. This helps protect you from falling back into the cycle of debt that may have caused problems in the first place.

So, no, you cannot get new credit to buy a new car while under debt review.

If you need a vehicle during debt review, there are still practical options to consider. 

You could borrow a car from a family member, use rental services for short periods, or rely on public transport and ridesharing options like Uber. In many cases, these options can be more affordable when you consider the full cost of owning a car, including fuel, insurance, and maintenance. 

If you already own a vehicle, focus on keeping it in good condition. Regular servicing and proper insurance can help it last for the full duration of your debt review.

If your situation feels complicated or you are unsure what to do, it is always best to speak to your Debt Counsellor.

They can guide you and help you stay on track.

Be careful of anyone offering to remove you from debt review so you can get a car. These offers are often scams and can undo your progress.

Stay focused on your plan, and once you have completed debt review and received your clearance certificate, you will have the freedom to make better financial choices, including whether buying a car makes sense for you.