So if one is under debt review can one get a consolidation loan? As with debt review giving me one instalment to pay so will a consolidation loan. If not how can one go about removing oneself from debt review? Because I was under debt review but now am paying my debts myself.
Thank you for your question.
The National Credit Act doesn’t allow you to enter into any new credit agreement while in debt review. However, you are allowed to take up a Secured Consolidation Loan. That is the only loan you are legally allowed to apply for during debt review.
If you are in the debt review program and want to remove the listing of debt review from your credit profile you need to do one of the following:
(1) Successfully complete the program:
When all debts are paid in full OR when all short term credit agreements, including car finance, have been paid up and you are only left with a mortgage loan which is not in arrears. Then you can request your clearance certificate from your debt counsellor, this is then sent to your creditors and the credit bureaus who are required by law to remove your debt review listing.
(2) Approach a Court to be declared not over-indebted and no longer under debt review. What this entails:
- You will have to provide detailed reasons to motivate that you have applied for debt review, that the debt counsellor has declared you over-indebted.
- Declare that your financial position has improved to such an extent that you are now able to meet all current debt repayments and that all arrears are up to date.
- Disclose your full financial position when you applied for debt review and details of the change of circumstances that enables you to now meet all current debt obligations.
Once the Court has found you no longer over-indebted your debt counsellor will remove your debt review listing from your credit record.
Important to remember when cancelling debt review:
- You are responsible for the full cost of this cancellation application.
- If you are married in Community of Property and applied jointly for debt review OR you have elected to voluntarily apply jointly for debt review, you and your spouse/partner will have to submit a joint application for the cancellation.
Hope this info helps.