Need a car but on debt review ?

The road to a debt-free financially strong you is a tedious and winding one but you must remember the reason you entered into the commitment of the debt review process. The aim is to drastically reduce or eliminate your debt. It would be silly to assume that you would not require some form of financial assistance while under debt review, because well, life happens and as much as we wish to prepare for the unexpected, we cannot always do so.Do you now find yourself in the situation where you need a car? As you may know, the debt review process prevents you from applying for additional credit, a safety measure put in place to help you on your path to reduce your debt. Let’s explore the options available to you.

If you're on debt review but need a car, it's important to understand that traditional car lenders typically won't approve new credit while you're under debt review, as your financial situation is considered high risk. However, once you've completed the debt review process and received a clearance certificate, your credit profile will improve, making it easier to qualify for a car loan. In the meantime, you might consider alternative options such as saving to buy a used or affordable vehicle outright, exploring dealer finance options that cater to those with impaired credit, or seeking a personal loan from specialized lenders that accommodate such circumstances. Consulting with your registered debt counselor can also provide guidance tailored to your specific financial situation and help plan for future vehicle purchase options.

If you’re in South Africa under debt review and need a car, there’s a solution available for you: rent-to-own also known as rent-to-buy. This service offers cars for a monthly rate with a low deposit. This can be a great way to get out of debt and improve your credit score. In addition, rent-to-own often has flexible payment plans, so you can pay off your car over time. And if you decide you don’t want the vehicle after all, you can simply return it with no penalty.

What does it mean to be under Debt Review? Being under debt review means that you are committed to repaying your debts in full, but you have negotiated new terms with your creditors. This may involve lower monthly payments, a longer repayment period, or a combination of both. It is important to remember that you will still be required to make all of your payments on time and in full.

How Long After Debt Review Can You Buy A Car?

If you are under debt review, you may be wondering how long you have to wait before you can buy a car. Although debt review is a process that helps you pay off your debts in a manageable way, it also limits your access to credit. Buying a car usually requires vehicle finance, which is not available to people under debt review. However, there are other options that you can consider, such as rent-to-own agreements or buying from private sellers. 

If you are already in debt review and have a court order restructuring your debt repayments then you are taking positive steps to get out of debt. Well done! For many who have been in debt review for a while you may now have gained financial equilibrium and may be thinking about new expenses such as upgraded or updated transport. Or maybe you have a problem with your current car and need to make a plan.