Debt review is a tool that has been designed to help people that are over-indebted and struggling to meet their commitments. It provides relief to those that cannot meet their monthly credit installments and are falling behind. Debt review will give consumers assurance that their car and other possessions will not be repossessed, provided they maintain the terms and payment for the debt review. It will also give them relief from creditors that might be calling them constantly for payment.

Given the reasons for the granting of debt review, it would not make sense to allow these people access to additional credit until such time as they are rehabilitated. It is therefore not possible to get a home loan or any other finance or credit agreement during this time. That would defeat the purpose of debt review.

This is not to punish those under debt review but merely to help them avoid any additional debt. Taking on more debt before the original debts are settled could well result in more problems and cause the collapse of the agreement. This would put the borrower in a worse position than they wore before and leave them no access to further debt review.

Any loan granted to someone under debt review is illegal and would be classified as reckless lending. Debt review is a process to help you through a difficult period and does not mean that you can never get credit again. It is a legal framework governed by the National Credit Act (NCA). You just have to work through the process, settle all debts and then start again, cautiously.

Once you are debt free you would have learned a lot about managing debt and you will be in a better position to afford and manage the responsibility of a home loan. Do not get caught up in the same trap again and proceed with credit and loans, including your home loan, with great care. That will allow you to enjoy your home without the stress of major debt hanging over your head.