While debt review is a necessary lifeline if you’re in financial trouble, it is important you are familiar with the process that you are committing to and the requirements for how to remove debt review.
With that in mind, we want to take you through the different ways that you can be removed from debt review status.
What is Debt Review?
Before considering how to get out of the process, you must first understand what it is and how the process works. Debt review, also known as debt counselling, is a legal process in South Africa designed to help individuals who are struggling with debt.
It involves working with a registered debt counsellor to compile a structured debt repayment plan based on your specific debt requirements. To receive the full benefits of the process you need to ensure you complete all the necessary steps to becoming debt free.
Debt Review combines all your debts into a single monthly payment, making it easier to manage your finances. When you start the debt review process, a debt counsellor negotiates with creditors on your behalf to lower your monthly payments. When you enter debt review, you are legally protected from legal actions taken against you by your creditors.
Bear this in mind before you consider how to get out of debt review. This protection that prevents legal action against you ends if you exit the process prematurely.
Debt review provides an opportunity for you to learn about how to manage your personal finances effectively. It also shows you how to apply healthy financial habits. Debt counsellors offer financial education to help you understand your financial situation better, so you can avoid future debt problems.
Why You May Want to Ask How to Remove Debt Review
Debt review is a commitment. While you are under debt review you have to make consistent payments according to the debt repayment plan. You’re not able to receive credit under debt review as your credit record will show that you’re in the process. This is to avoid getting yourself into more debt and deepening the hole you might already be in. This structure is put in place to protect you from that ever happening while you’re undergoing the debt review process.
Some people may feel embarrassed or judged by others for undergoing debt review. However, your financial health and freedom from debt are far more important than what others may think of you and remember you are not alone as there are millions of South Africans undergoing the same process.
Yes, You Can Get Out of Debt Review
It is possible to end debt review but only once you have completed the repayment plan and settled your debts. At this time, you can request a clearance certificate from your debt counsellor. This certificate confirms that you have successfully completed the debt review process.
A copy is sent to credit bureaus to update your credit record and remove your debt review status. After this, you can access new credit and manage your finances independently once again.
It’s also critical to ensure that you’ve made all payments and settled your debts before ending the debt review process. Ending debt review early or not meeting the repayment requirements can have several negative consequences. These include potential legal action by creditors and damage to your credit record.
Removing debt review without experiencing these negative results means allowing the process to run its course until it’s completed.
A Brief Warning
It’s important to be careful and practice healthy scepticism towards anyone who tells you that they can get you out of the debt review process for a fee by transferring to a new debt counsellor. This is not legal practice. Often, these debt counsellors are not properly registered with the NCR and their actions are not in your best interest.
Staying aware of these kinds of scams will save you a lot of time and a lot of money.
Talk to Recognised Debt Professionals Who Can Really Help
National Debt Counsellors are required by the law to act in your best interests so that you attain a debt-free life. We help you reduce your monthly instalments to an amount you can manage realistically. Our debt counsellors give you the tools, guidance, and support you need to manage your finances effectively. This will help you take control of your debt.
Unlike dishonest, unregistered, so-called ‘debt advisors’, we’re qualified to deal with your debt and remove the burden on you so that you are not left worse off than you were before. Contact us today for a free, no-obligation assessment of your financial situation.
