So many people are worried about their credit record. My advice is to relax and don’t worry about it, let me explain. Remember, while you are under debt counselling you have a negative debt review indicator on your credit record and you are not entitled to any further credit. By the time you have paid off your debts the negative listings added by your creditors may well have fallen off your credit record as the maximum data retention periods would probably have lapsed. You are also entitled to request your debt counsellor to issue a clearance certificate at the end of the debt counselling process. This certificate requires the credit bureau to remove any account listing where the debt was repaid during debt counselling. So, by and large all the negative listings should be removed from your credit record by the time you have emerged from debt counselling. It is important to note that having lived on a budget, without credit while under debt counselling, you should really avoid getting more debt once you exit debt counselling – your aim should be to remain debt free.
Written by Stephen Logan, Independent Consumer Attorney