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What to expect when debt review is over

The debt review process can be quite daunting, especially if you don’t know what to expect once it had been completed. At Libertine Consultants, our clients often ask whether they’ll ever be able to buy a house, finance a car or get any sort of credit once their debt counselling bas been completed. Happily, the answer to most of these questions is YES. Debt management is a measure that has been put in place by the National Credit Act to safeguard South African consumers against the crippling effect of piled-up debt, which means the process is meant to rehabilitate, not to punish. So how does it work?

date: 04/01/2017Author:

Here is what you can expect during the final stages of debt review:

The debt review flag will be removed from your profile When a client signs up for debt counselling, Libertine Consultants' debt counsellors will ensure that all credit bureaus and credit providers are notified that the client is now under debt review. The credit bureaus will then proceed by flagging the clients profile on their system as ‘under debt review’. The purpose of this measure is to prevent the client from taking on any additional debt, so their financial situation can be rehabilitated effectively. Once the client's debt is paid off, Libertine Consultants will issue a clearance certificate to each of their creditors and notify the National Credit Regulator (NCR) and credit bureau. This will prompt the credit bureau to remove the debt review flag from the client's profile.

You will be free to take out credit once more

Once the debt review flag is removed from your credit profile, you’ll be eligible to take out credit once more. HOWEVER, it is highly recommended that you work with your debt counsellor to establish a sustainable budget before you take on any debt. While the high cost of living means a lot of people live from paycheck to paycheck, and often need credit to buy bigger ticket items like appliances, it is not wise to subject yourself to the burden of debt immediately once your credit record has been cleared. Take your time to establish a baseline budget for your family’s day-to-day expenses before you extend yourself financially.

Get in touch & stay informed

Do you have any questions about the debt review process and how it will affect your future credit rating? Get in touch with a Libertine Consultants representative; we’re more than happy to walk you through it step by step.

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Call +27 (21) 949 2211 for advice on debt in Cape Town and rest of South Africa