The short and simple answer is no. In fact, being under debt review could be seen as beneficial to prospective job opportunities or even looking to move up within an organisation.
Going under debt review while employed
If you are currently employed and are beginning to fall behind on your debts, there is no reason that an employer would object to you going under debt review. In fact, it shows responsibility on your part and should provide comfort to an employer that you are taking the initiative to manage your finances. However, there may be some occupations that ask questions.
If you work in the financial or banking sectors a credit check is more than likely going to take place periodically but unless you are contractually obliged by your employer to disclose such information, then they should not discriminate against you should this information arise from a credit check. Should you wish to move up within your organisation and you are in debt it would be more beneficial to your chances of securing a promotion if you are attempting to manage your financial situation as opposed to letting it get out of control resulting in defaults and potential judgements.
No other occupations need know about your debt review and we would never inform them as anonymity is extremely important to us and our clients.
Looking for employment while under debt review
If you are looking for first time employment or a new job, depending on which sector or type of job you are looking for, you should not be asked about whether you are under debt review. If the job you are looking for is in the financial or banking sector then they may need to do a credit check to assess your current financial situation.
In this scenario, should you have too much debt your application would most likely be denied anyway but being under debt review and showing you are attempting to rectify your financial trouble and are making steps to improve it would show responsibility. If you have debts and have let them get out of control gathering defaults or judgments the likelihood is that any employer in these sectors would see that in a negative light.
Advantages of debt review
Debt review is a handy financial tool, while you are under debt review the following benefits are clear:
Instant protection from debt collectors and legal action from your creditors
Creditors are not able to repossess assets as long as you keep paying your debt review instalment
Lower monthly payments
A single affordable monthly payment
Lower interest rates
In some cases, you may be able to settle your debt faster
You will be paying less on debt and therefore have more money available to spend on living expenses and supporting your family
Disadvantages of debt review
While under debt review - the following effects are to your detriment:
You are not able to apply for more debt while under debt review
In some cases, it can take longer to settle your debt
Your credit profile will be marked as under debt review while you are under debt review so that you cannot borrow money during the process
You are bound to your debt review agreement and it can't be cancelled until you complete your entire debt review plan and settle all your debts
You still need to settle the agreed payment per month so that the national distribution agency can pay your creditors.
When is debt review a good idea
Debt review is a good idea for the following individuals:
You still earn an income on a monthly basis
You pay more than a R1500 per month towards your debt
You are unable to meet your living expectations due to the impact debt payments are having on your financial situation
You don't have any judgements on your name
You are not blacklisted by any creditor
You want to save on debt payments on a monthly basis
When is debt review not a good idea
Debt review is not perfect for everyone - some individuals that are negatively impacted by applying for debt review are:
If you are blacklisted or there is a pending judgement against your name
You have lost your income and can't afford your debt anymore
You want to settle all your debt with an available lump sum of money
You can afford to make your debt payments monthly
You want to and think you will afford to buy a house or car in the near future
