We have all seen the various adverts on social media making various promises to consumers to get them out of Debt Review and use Debt Mediation as an alternative to clear their debt and have their Debt Review flag removed from their status as this will allow them to take out further credit. (I have seen countless victims falling for the process as its not a simple transition and it can have devastating consequences).
Know the facts:
Under Debt Counselling:
Under Debt Mediation.
These are the basic differences between the two so let’s have a look at the disadvantages
Disadvantage of being under Debt review/Counselling:
Disadvantage of being under Debt Mediation:
In essence there is a place for debt mediation, especially for those that are unable to afford making use of Debt Review/Counselling or they have a partner that does not wish to be part of the process.
Yes, you can apply for further credit under Debt Mediation. However, in practice you have already demonstrated that you are unable to pay your current debt, (Credit bureaus will show that you are a slow payer). Lenders will have to take the following into account.