15 Oct Can You Get a New Phone While Under Debt Review?
Life under debt review looks a little different – you’re focused on your financial wellbeing, and benefitting from a clear path towards repaying all that you owe. Maximising your financial freedom through debt review is incredibly rewarding, and working with our Limdebt team ensures you are on the right track. All our debt counsellors are registered with the National Credit Regulator (NCR), and provide personalised services to benefit you.
One way debt review remains effective is that you cannot enter new loans or contracts during the process. This does not mean you cannot make cash purchases, though. So, can you get a new phone while under debt review? And what happens to your current phone contract when you enter the process? Let us explore this topic.
Phone Contracts under Debt Review
While under debt review, you will not be able to take out a new phone contract. When you enter the process, we are required to notify all credit bureaus, and your credit report is then flagged. When you apply for a phone contract, mobile providers will perform a credit check as part of their approval process. This check will reveal that you are under debt review, stopping them from entering a contract with you.
This is one of the hidden benefits of debt review you should know. The best way to succeed at clearing your debts is to avoid any new financial responsibilities that will impact your affordability. Once you’ve overcome your debt and completed the process, you are free to enter into new credit agreements. How soon can you apply for credit after debt review? We suggest waiting about 3 months from the time you are issued your debt clearance certificate.
Buying a Phone Cash under Debt Review
If you need a new phone, you are in luck – you can purchase a phone for cash during debt review. Cash purchases do not require credit checks, so there is no restriction. As long as it fits within your budget and doesn’t put you back too much, this can be a smart way to stay connected without hindering your progress in debt review.
If you are concerned about a large one-time expense, consider saving money each month until you can afford the phone outright.
What Happens to Your Existing Phone Contract?
If you already have a phone contract at the time of entering debt review, it will be considered part of your monthly budget, so you can afford it. As long as your cellphone contract is up to date, it usually remains in place. If you are falling behind on payments, we may be able to include your contract repayments in your debt review repayment plan, or the service provider may choose to suspend or cancel the contract.
If you’re looking for a legal way to cut debt repayments fast, Limdebt is here to get you through debt review successfully. CONTACT US now to get started.