26 Feb Cell Phone Contracts When Under Debt Review

Debt is a major source of stress amongst South Africans, and debt review has played an important role in providing financial relief to over-indebted consumers. At True North Debt, we understand debt struggles and what it feels like to be under significant financial pressure. We are committed to our role in your path to becoming debt-free.

While debt review has many advantages, it is important to understand what you cannot do while under debt review. During the process, your main goal is to get out of debt; you are not legally allowed to enter into any new contracts. But what about cell phone contracts when under debt review? This is a good topic to explore and fully understand.

Cell Phone Contracts Count as Credit

Since you cannot enter into any new credit agreements while under debt review, you will not be able to access a new cell phone contract either. Any application for a cell phone contract is followed by a credit check, which will reflect your debt review flag, leading to a declined application. This is how debt review works, by keeping you on a straight path towards clearing your debts for good.

It might seem like a frustrating limitation, but it is all part of the bigger picture. The National Credit Act (NCA) introduced debt review to help consumers overcome their debts. The system intentionally makes new credit unavailable, giving you the best chance of succeeding and repaying your existing debts. In addition to cell phone contracts, you also cannot access store accounts, credit cards, or loans while under debt review.

What About Existing Contracts?

Debt review effectively reworks your existing debts (including your cell phone contract) into a single, more affordable monthly repayment. This means if you enter debt review with a cell phone contract in place, it remains in place as long as you keep making your monthly debt review payment. If you really need a new phone for any reason, the best option would be a straight cash purchase, if you can afford to do so.

Government assistance for debt relief is available, as long as you are ready to take the steps. At True North Debt, our debt counsellors are National Credit Regulator (NCR) registered, meaning you are in the best possible hands. The long-term benefits of debt counselling are worth the credit limitations, which you will see for yourself.

Conquer Your Debts Today

If you’re seeking a legal way to reduce your debt repayments, then you are right where you should be. At True North Debt, our debt counsellors deliver a result-driven debt review service, perfectly aligned with your affordability and financial goals. Your road to financial freedom starts here and now.

We are here to make your debt review experience as stress-free and meaningful as possible. CONTACT US today to get started.