Robin Raichman clarifies that consumers under debt review cannot acquire further credit, as it could be deemed reckless credit granting. Successful completion of debt review is required before applying for new credit.

In this episode of the Old Mutual Finance Podcast Series, Senzo Lubisi is joined by Robin Raichman, and they both unpack debt review process and consideration, debt consolidation and relief options, prescribed debt as well as listing and paid-up letters.

Take Outs:

1. Consumers should research and understand their financial circumstances before applying for credit.

2. Being honest about net disposable income when applying for credit to ensure affordability is key.

3. The importance of maintain good repayment habits to build and maintain a healthy credit score and history.

4. Consumers facing financial difficulties should proactively reach out to creditors to determine suitable relief options.

5. Consumers should consider debt review carefully and only apply if they are unable to make suitable arrangements with creditors.

6. Consumers should seek necessary information from debt counselors and creditors to make informed decisions about debt review.

7. Consumers should evaluate their financial circumstances and the duration of their difficulties when considering relief options like consolidation or short-term arrangements.

8. Consumers should communicate openly and clearly with debt counselors if facing challenges during the debt review process.

9. Consumers should reach out to creditors as soon as they experience financial difficulties to prevent accounts from being handed over to external debt collectors or attorneys.

10. Consumers should be aware of the potential for additional costs and negative impacts on credit scores if debt is allowed to prescribe.

11. Consumers should talk to creditors to find suitable solutions for repayment and prevent debt from prescribing.