If you’ve been through a debt review, you may be wondering how to get out of it once your financial situation has improved. In South Africa, the debt review process offers much-needed protection to those struggling with debt, but when you’ve regained control of your finances, you’ll want to exit the process and have the debt review notice removed from your credit record.
Here’s a breakdown of how the Debt Review Removal process works and what steps you need to take to regain your financial freedom.
What is a Debt Review?
Debt review, also known as debt counseling, is a legal process governed by the National Credit Act (NCA) in South Africa. It’s designed to help over-indebted consumers by restructuring their debts so they can afford to repay them. Under debt review, you cannot access new credit until the process is completed, and your credit record is flagged with a “debt review” notice.
Debt review can be a lifeline if you’re facing unmanageable debt, but once you’ve paid off your debts or your financial situation has improved, the next step is to remove the debt review status from your credit profile.
Steps to Remove Your Debt Review Status
- Assess Your Financial Situation
Before starting the removal process, ensure that you are no longer over-indebted. If you’ve settled most of your accounts and can afford your monthly repayments, you’re in a good position to begin the process. - Obtain a Clearance Certificate
Your debt counselor will issue a clearance certificate once all debts (excluding home loans) are settled. This certificate proves you’ve fully repaid your debts. For active home loans, ensure they are up-to-date and well-managed. - Apply for Court Order (if Necessary)
If placed under debt review by a court order, a new court order is required for removal. If not, you can often skip this step, though consulting a professional ensures accuracy. - Notify Credit Bureaus
Once your debt counselor has issued a clearance certificate, they will notify credit bureaus and the National Credit Regulator (NCR) to remove the debt review status. - Update via NCR Debt Help System
Your debt counselor uses the NCR Debt Help System to finalize updates on your credit profile, lifting the debt review flag.
How Long Does the Process Take?
The process typically takes 30 to 60 days from the time you receive your clearance certificate. Following up with your counselor and credit bureaus ensures timely updates.
Can You Apply for Credit After Debt Review?
Once the debt review notice is removed, you can apply for new credit. However, proceed with caution. Focus on rebuilding your credit score by starting with small, manageable credit accounts and paying on time to enhance your financial reputation.
Key Takeaways
- The debt review removal process begins once your debts are settled or your financial situation improves.
- A clearance certificate is required to initiate the removal process.
- Credit bureaus and the NCR must be notified to update your credit record.
- The process can take up to two months to complete.
Exiting debt review is an empowering step toward financial independence. If you’re looking for assistance with the Debt Review Removal process, contact Remove Debt for professional guidance.
