Debt Review Removal: Navigating The Journey Out
Debt review removal can be a major concern for individuals as they start their journey to manage debt. The process, introduced by the National Credit Act 34 of 2005, has been a critical turning point for those grappling with heavy debt. It’s designed as a helping hand, not a permanent solution, recognising that financial situations can change for the better. As life evolves, so might the need to move beyond debt review. But navigating your way out isn’t always straightforward. In this blog, we clarify the debt review removal process, making it easier to understand and manage.
How Does Debt Review And Debt Review Removal Work?
Endorsed by the National Credit Act or the Debt Review Act, Debt review, often seen as a debt rehabilitation program regulated by the National Credit Regulator (NCR), is designed to help individuals overwhelmed by debt find their way back to financial stability.
By negotiating a single, reduced monthly payment with creditors, debt review ensures that you can cover your essential living expenses—groceries, utilities, and transportation—without incurring additional debt. This process is not just about debt removal; it’s about instilling new financial habits that can last a lifetime.
Can You Buy A Car Under Debt Review?
Being under debt review means your primary focus should be on settling your current debts rather than accumulating new ones. The program recognises when individuals are overwhelmed by debt and marks them as such with the credit bureaus, which naturally limits their ability to secure new credit.
This includes financing for things like cars because taking on more debt would go against the debt review’s aim of helping you get back on your financial feet. It’s a period for financial recovery, not for making your financial situation more complicated.
After you’ve managed to clear your debts and secure your clearance certificate, it’s part of our job as your debt counsellor to notify the credit bureaus of your debt review removal status. Legally, they are required to update your credit profile to reflect that you are no longer under national debt review within 21 business days. This action is vital for regaining your financial freedom and paves the way for you to access credit opportunities in the future.
How To Remove Debt Review
Debt review removal is possible via two main stages: before the court order and after the court order. Let’s break it down to make it simpler:
Debt Review Removal Before The Court Order Stage: Work closely with your debt counsellor. If your financial situation gets better, you can show new evidence to the court. This might help you finish the debt review process earlier.
Debt Review Removal After the Court Order Stage: Just follow the plan, pay off your debts as agreed in section 71, and then you’ll get an NCR clearance certificate. This is your ticket out of debt review, officially.
In both cases, the key is to stay informed and work closely with your debt counsellor to navigate the debt review removal process smoothly.
Debt Review Removal: The Role of Debt Counsellors
Debt counsellors can’t magically make your debt disappear, but they can pause their support if certain conditions are met. It’s important for you as a consumer to know that once you’ve started a formal debt review, NRC debt review removal isn’t straightforward. The answer to the question of how to cancel debt review is you’ll need to follow specific legal steps unless there were mistakes made at the start of your debt review. Here are four key points to keep in mind if you want to clear debt review:
- Making Payments Directly to Creditors: Just because you decide to pay your creditors directly doesn’t mean you’re out of the debt review process. It’s crucial to keep your debt counsellors informed and share your payment receipts with them. This helps move things along toward getting your debt review cancellation.
- Termination Of Debt Review By Credit Provider: If your creditors decide to end agreements, you’re still in the debt review boat until you’ve paid off everything you owe. This means going back to your original agreement terms. While many people ask themselves, does debt review expire? The simple is no. You have to complete it.
- Switching Debt Counsellors: If you find yourself needing a change, you can switch to another registered debt counsellor without having to start the debt review process all over again. This helps keep things on track according to the rules.
- Coming Back After Being Inactive: If you were once inactive and want to re-enter the debt review process, you can do so easily. It’s like hitting the reset button on your path to financial health.
How To Remove Debt Review Status
If you’re asking yourself, how do I go about removing my name from debt review well, figuring out how to remove your name from debt review starts with securing a clearance certificate signifying the completion of your repayment plan under debt counselling. This certificate is proof that you’ve finished your repayment plan while under debt counselling and helps remove debt review flag on your credit report.
Once you’ve reached this point, your debt counsellor will take care of your free debt review removal without needing external debt review removal companies. This removal from debt review usually includes issuing this certificate, and will send it to both the credit bureaus and your creditors to show you’ve successfully completed the program. To be eligible for this certificate, there are three important things you need to have done:
- You’ve paid off your unsecured debt.
- You’re up to date on your mortgage or long-term loan payments.
- You’ve paid all the fees related to debt counselling.
How Long Does Debt Review Removal Take?
In addition to the question “Can I cancel debt review?” is the question pertaining to the time frame involved in the debt review removal process. Getting your clearance certificate and getting out of debt review can take a varied amount of time, and it depends on a few key things. Think of it as a journey that can be quick for some and longer for others. What makes the difference? Well, there are a couple of factors:
- How long your debt review takes: This is about your repayment plan, which is customised based on what you can afford. Plans can be short, like 12 months, or stretch up to 5 years. The faster you’re able to clear those debts, the sooner you can get your hands on that clearance certificate.
- How effective your debt counsellor is: Once you’ve paid off your debts, your debt counsellor steps into the spotlight. Their efficiency, how much they have on their plate, and the systems they use can speed things up or slow them down when it comes to getting your certificate. Picking a counsellor, like NDA, who’s known for being quick and efficient, can make a big difference.
- How quickly your creditors update your payment status: The pace at which your creditors confirm you’ve paid off your debts also matters. If they drag their feet, it can delay you getting your certificate.
Debt Review Removal: Rebuilding Your Credit Score
Now that we’ve unpacked how to remove yourself from debt review, we focus on how to go about improving your credit score after debt review removal. It’s important to adopt good credit habits like making payments on time, keeping your credit usage low, and avoiding taking on debt you don’t need. It’s also a smart idea to regularly check debt review status online to make sure everything is correct.
In terms of how to check debt review status, you can simply log on to any of the credit bureaus and the debt review flag will appear on your credit report if your debt review removal was still not finalised. If you find any errors, get in touch with your debt counsellor or the credit bureaus right away to sort them out.
Empowerment Beyond Debt Review With National Debt Advisors
At one of South Africa’s leading debt counsellors, National Debt Advisors, our mission extends well beyond helping you navigate the debt review process. We’re here to empower you, equipping you with the knowledge you need to make smart financial choices. Think of achieving debt freedom and debt review cancellation as the first milestone on your journey towards lasting financial well-being. At National Debt Advisors, we urge you to stay on top of your finances and not hesitate to seek our advice whenever you need it.
Together, we’ll tackle the challenges of financial recovery head-on, paving the way for a future that’s not just brighter but also financially secure. We highlight the critical support that debt review offers to those overwhelmed by debt. This process isn’t just about getting back on your feet—it’s about staying there by embracing better financial practices.
But remember, your dedication to seeing the process through is crucial. Stopping payments or leaving the program too early can have serious repercussions, including potential legal actions from creditors and the threat of losing your assets, all while still being under debt review.
If you need more help with debt review removal or any of our services, please feel free to contact National Debt Advisors today.
