Does a Debt Review Hurt Your Credit?


NDA’s Got Your Back

No, debt review won’t hurt your credit. In fact, quite the opposite!

During debt review, the credit bureaus can’t list any further negative information under your credit profile. As a consumer undergoing debt review, you’re under the exclusive protection of the National Credit Act, which we at National Debt Advisors just so happen to live by. NDA will have your back, while you’re busy blasting those debt zombies to smithereens.

Just one thing, you MUST, MUST make good on the sweet, low debt payments your debt counsellor organises for you, without dropping the ball even once. A single missed payment = very, very bad things. Warning! You’ll be kicked out of debt review if you skip even one.

Call the Credit Hounds Off

At National Debt Advisors, your debt counsellor will give the credit bureaus the heads up that you’ve applied for debt review ASAP. As such, the credit bureaus will flag your profile, indicating that you are under debt review. At this point, if you’ve got credit providers (CPs) hot on your heels and foaming at the mouths, they’ll be stopped dead in their tracks from taking legal action against you.

The regulations under the NCA will hold them off for 60 days, while your debt counsellor prepares a badass proposal for reduced instalments and interest rates that’ll knock the socks off your CPs and the Magistrate’s Court. During this time, your CPs won’t be able to drop that ‘see you in court’ bomb on you, they’ve been itching to.

Serious Debt Free Cred

Once you’ve settled those debts snugly in their grave, your debt counsellor will whip out your clearance certificate and spread the good news to the credit bureaus and your CPs.  Given their marching orders, all negative listings must be removed within 5 working days of receiving your angelically glowing clearance certificate.

All will be right with world again, as your financial freedom is reinstated and your debt free crown placed back upon your head. What’s more, all traces of you ever having undergone debt review will be wiped clean from your credit profile.

Ain’t Going Back!  

As far as applying for credit again, some banks are stricter than others and may need you to prove your creditworthiness by building up your credit score for a couple of months. No biggie. Others may be chill after realising you’ve done the whole credit rehab thing, and cut you some slack.

Now, this is not necessarily a good thing. Let’s not forget how hard you’ve worked to clean up your act, after falling so hard from grace. Best to take it easy on the credit. After all, once you’ve had a taste of the debt free life, you won’t ever want to go back. That dingy, dreadful, smelly debt hole? No ways!

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