You feel like you’re drowning under a mountain of debt. You’re having a lot of problems tackling your student loans and credit cards. It’s hard to balance your payments with your bills.
If you find yourself short on your rent every month, consider undergoing a debt review. You won’t be able to take out another loan while your credit account is in review, but when everything is said and done, you’ll know how to manage your debt.
Are you ready to get started? Keep reading to learn more about the debt relief process and find out if it’s right for you.
What Is a Debt Review?
Once you schedule a debt review, a counselor will get in touch with you. You’ll sit down with them and go over your credit accounts.
The counselor will look at your debt and current bills. After they finish analyzing your finances, they’ll help you come up with a plan that will allow you to make your loan payments and handle your living expenses at the same time.
Can You Take on New Debt?
When you go under a debt review, the credit bureau is notified about it. Until you finish up with the review, you won’t be able to take out another loan.
While you’ll get turned down for a housing loan, renting an apartment is still possible.
Your potential landlord will run your credit, but your debt counselor can provide you with a proof of budget letter that almost all complexes will take.
Will It Affect Your Employment?
Some potential employers will look at your credit when they do a background check. Unless you’re trying to get into the financial career field, though, it doesn’t matter too much.
As long as you’re upfront with the company and let them know that you’re trying to take care of your outstanding debt, you should be fine.
What About Insurance?
Insurance companies pull your credit before giving you a price quote. It will be hard for you to find a company to insure you if you’re under a debt review.
If you do find a company that will give you an estimate, the premium might be a little out of your budget.
Clearance Certificate
After you’ve taken care of your debt payments and you’re in the clear, your counselor will give you a clearance certificate.
It’s a piece of paper that tells the credit bureau that you’ve finished your debt review. Congratulations! You’re back in the credit market and can take on new loans if you want.
If you wish to cancel your review before you’re done with it, click the following page.
Take Your Life Back From Debt
Are you having a hard time balancing your loans with your regular expenses? It might be time for you to go under a debt review. A counselor will sit down with you and come up with a plan that will allow you to take your life back from debt.
For more tips that will help you manage your money, visit the Personal Finance section of our blog.