If I paid all the creditors, except my car and home loan (I can afford both instalments), and I want to exit debt review. I do understand you need to go through a rehabilitation period. Would that be until you catch up with all the arrears payments on the home loan and car? And on average how long does rehabilitation take?
Thank you for your question.
Yes, “rehabilitation” is achieved once you’ve brought all arrears up to date and are able to satisfy all your credit agreements according to the original contractual rates. This includes the original interest rate, the original instalment amount etc. Or when your debt has been settled. Should you exit the debt review prematurely, without reaching the point of “rehabilitation”, a clearance certificate cannot be issued.
When a debt review is cancelled, the original credit agreement is revived and the creditors are free to proceed to enforce their rights in terms thereof. That is why we urge consumers not to cancel without making prior arrangements with creditors. We often assist them to do so. First reach a written agreement with the creditor about the capitalisation of all payments in arrears and the resumption of the original instalments prior to cancelling your review and losing your protection.
The duration of this process depends on various factors, if you would like more information about how long it would take for you specifically you are welcome to send your details to [email protected]
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