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Its natural to Worry

Having lots of debt is stressful. It can weigh you down and sap all your energy.

So, when you hear about debt review and how it allows you to pay off your debt in a more reasonable and manageable way, it may sound like a dream come true. But, if you have started the process, doubts might start to slip in.

Is it the right thing to do?

Have you made a mistake?

Will it really work for you?

It is natural to have such thoughts. Most of us fear making a big mistake that could make our situation worse off. In fact, there are many reasons why you might wonder if you have made a mistake in entering debt review.

Let’s look at a few and put your mind at rest.

Reasons Why Some People Think Debt Review Was a Mistake

You may have heard or read about some people who began debt review but then stopped.

They may blame the process for many of their problems and claim it did not work for them.

Normally those stories leave out critical information about who really was to blame and why the person really left debt review.

Let’s look at some common reasons why people think it was a mistake for them.

Credit Withdrawal

One of the main reasons people think entering debt review is a mistake is the restriction on accessing new credit. It temporarily appears on your credit report.

Most people do not realise how addictive credit is. It is like an empowering drug that lets them spend money they do not have and probably can’t even afford to spend. It is highly addictive.

When you enter debt review, your credit accounts are frozen, as the idea is to pay off credit not get more credit. So can’t take on additional credit until the process is complete.

For those who are so very used to relying on credit for everything from groceries to emergencies, this can be a big adjustment. The first few eeks can feel like going to credit rehab.

Debt Review is not a mistake because:

Switching to a cash lifestyle can be very beneficial. It encourages better money management and reduces the risk of falling back into debt.

Who cares if it is on your credit report. You will finish debt review and the listing will be gone. So…who cares?

Credit is debt. And we all know debt is bad. By learning to live within your means and avoiding the temptation of credit, you can build a more secure financial future.

It Requires Financial Discipline

Being in debt review requires a higher level of financial responsibility and discipline than most people have had in the past.

While in the process, you need to stick closely to a budget and need to prioritize your spending properly so that you can ensure you can make your debt repayments.

This shift in financial behaviour can be challenging for those who have not done so in the past.

Debt Review is not a mistake because:

No one really enjoys doing a budget, but it is incredibly helpful in keeping finances under control. Tracking what you have actually spent can also be eye-opening and prevent future financial troubles.

Not doing so in the past might be one reason why you were under financial pressure to start with. The discipline you develop now will serve you well in the long term.

 

Hearing Negative Experiences from Others

It can make you really worried when you hear or read negative experiences other people had with debt review.

Stories and misinformation about debt review can be powerful. Friends, family, or acquaintances who may not fully understand it, can influence your perception with thoughtless words.

The internet and even the press can focus on a few bad experiences of a limited number of people, giving the wrong impression that the process is not working.

Debt Review is not a mistake because:

Over 12,000 people enter the process every single month, showing that it is indeed working for many.

Unlike other ways to pay back your debts the process is a legal one. It is done via the courts and is part of the law (The National Credit Act). It offers you protection and it works. Its normal that there may be a bad story here and there.

Consider how many bad stories you have heard about people who went to a doctor or dentist. Does that mean you will never go to a dentist?

Tempting Offers of More Credit

Offers online on social media promising a new loan for those in debt review or an easy way out of debt review can be incredibly tempting.

These scams often present themselves as quick fixes, offering to clear your debt without the discipline and time required in debt review. You might not realize the offer is a scam and it may seem reasonable or even great. You might think you no longer need debt review and these offers will actually work.

Debt Review is not a mistake because:

Debt review is a slow and steady process. The process is not too good to be true because it requires time and effort. But offers that you see online promising more credit or removing your debt review status are almost always scams.

Most of the time, such offers involve you giving people money upfront for a service that you actually will not get or won’t qualify for. This will derail all the progress you have made so far in paying off your debt.

This is why it is important to communicate well with your Debt Counsellor when you see any such offers and start to think about them.

Misleading Information from Collections Agents

While under debt review, you may get a call from a collections agent who says they represent one of your credit providers.

They can sow doubt in your mind that the process is actually working and may make promises of giving you a better deal outside of debt review or even make empty promises of giving you more credit if you leave debt review.

Debt Review is not a mistake because:

These claims are false. Just check your statement from your Payment Distribution Agent. Your credit providers and Debt Counsellor are getting paid. 

And remember debt review is a legal process done through the courts designed to protect you. A judge went through your matter and attorneys for all the credit providers and your Debt Counsellor went to court to get your court order.

Even if that is still under way you will already have copies of your court papers.

The process is not some loose agreement on the phone which can be broken at any time. It is binding on the credit providers.

So Many Reasons to Stay in Debt Review

The ultimate goal of debt review is achieving financial freedom.

While the process can be challenging and somewhat restrictive in the short term, the long-term benefits are substantial. Completing debt review means you will be debt free, which leads to reduced financial stress and increased peace of mind.

When you feel a moment of doubt about whether you have made the right decision, focus on this end goal and remind yourself that the sacrifices made now will pay off in the future.

In addition to long-term benefits, there are many immediate advantages to being in debt review.

For starters, you will no longer receive all those nasty collections calls, emails, and no more scary letters.

Having a plan in place to deal realistically with all your debt allows you to sleep well at night. No more waking up in cold sweats or feeling nauseous.

And you also have access to financial advice from your Debt Counsellor.

These short-term benefits can provide immediate relief and motivation to stick with the process till you are debt free.

Building Financial Skills

Debt review is also an opportunity to develop better financial habits and discipline. Learning to manage your money more effectively is a skill that will serve you long after you finish the debt review process.

For instance, sticking to a budget helps you prioritize necessary expenses and avoid unnecessary purchases. Tracking your spending ensures you stay on top of your finances and make informed decisions. These skills are invaluable and most people never master them but you can.

Hundreds of Thousands of Success Stories

There are many success stories of individuals who have completed debt review and regained control of their finances.

These stories can be a powerful source of inspiration and motivation. Hearing about others who have faced similar challenges and emerged successfully can help reinforce your commitment to the process.

 

For some real-life examples, check out the podcast DebtReviewWithDummies

Available on

Apple Podcasts,

Spotify, and

www.debtreviewwithdummies.co.za.

You Now Have an Amazing Support System

Debt counsellors play a crucial role in the success of your debt review process.

They are there to help you navigate the challenges and provide guidance.

But remember that is only true if you communicate with them regularly.

They can provide reassurance when you have doubts or concerns and they can help keep you focused on your goals.

Debt Counsellors have a lot of experience, resources, and access to information that most others do not. This can be used to help you. Whenever you are feeling concerned or unsure, reach out to your Debt Counsellor. They are there to support you and ensure you succeed in your journey to financial freedom.

Debt Review Not a Mistake

While debt review can be daunting and yes, sometimes doubts can come up, it is a valuable process for achieving financial freedom.

By understanding the reasons behind these doubts and focusing on the benefits you get while in debt review, you can stay committed to the process.

Debt review can help you develop better financial habits, give you access to the support of an experienced Debt Counsellor and help you pay off your debts, of course.

So, if you feel unsure or someone says something that makes you nervous, don’t panic. Take a deep breath and remember it is a formal legal process that has worked for so many other people. It will work for you if you stick to the process.

Remember, the sacrifices you make today will lead to a debt free, financially stable future. Entering debt review was not a mistake. It was probably the best financial decision you have ever made.