How to Get Out of Debt Review Fast

By Dave Nyam •  Updated: 07/07/24 •  5 min read

Debt review in South Africa is a legal process that assists over-indebted consumers by providing the management of credit and payment to rightful creditors. The process offers protection from creditors by structuring a plan toward repayment. To most, being under debt review is very restrictive, mainly because it drastically reduces access to further credit. For most, coming out of this process is desirable as quickly as possible. The following article will discuss the possibility of canceling a credit review. We will cover how to speed up the process and answer some frequently asked questions about loan review in South Africa.

Is it Possible to Cancel Debt Reviews?

South African law does not allow consumers to withdraw from the debt review process voluntarily once declared over-indebted. There is a legal way to exit debt review by fulfilling the conditions set by the National Credit Regulator. These conditions include settling all your debts in terms of the prescription of the debt review court order or payment arrangement plan. Furthermore, if you have paid up all your short-term credit agreements and are left with only a home loan, you also qualify to exit the debt review. In this case, your debt counselor will issue you a Clearance Certificate, which is required to clear your debt review status with credit bureaus. Important to note is that free debt review removal is a faraway myth, and there will always be some associated fees for debt counseling or other legal services required for the removal process.

How to Get Out of Debt Review Fast

To come out of debt review faster, focus on increasing income and cutting down expenses to repayment. Here are some strategies:

How Long Does It Take to Get Out of Debt Review?

This process of debt review differs in all cases. Some factors that would raise this difference are the total amount of debt and one’s ability to repay. The conventional time it takes to complete the debt review and get a clearance certificate is 36-60 months. This duration, however, depends on several variables, such as the monthly payment quantum one can pay, interest rates, or even possible changes in your financial position on account of the review. Sticking to the repayment plan and avoiding arrears go a long way to ensuring that one gets out of debt review in good timing. Some people even get out of debt faster because they make extra payments and sometimes optimally manage their finances.

Can I Settle My Debt While Under Debt Review?

Yes, it is possible to settle your arrears while under debt review. Settling your credits ahead of schedule is one of the best ways to expedite your exit from the process. If you have some luck or save some extra money, you can use these to settle your loans faster. After all your debts, save probably for your home loan, are settled, you can apply for a clearance certificate from your debt counselor. This will prove that you have completed the debt review process, placing you in an excellent position to re-enter the credit market.

What Happens When You Cannot Pay Your Debt Review?

If you find it impossible to meet the repayment obligations under your debt review plan, you must do something quickly. Be sure to contact your debt counselor right away to discuss your case. A debt counselor can bargain with creditors about possible means of adjusting your repayment plan, which can reduce the monthly payments to something more manageable. Not attending to arrears could lead to the withdrawal of your debt review status and the related legal implications, such as actions from creditors with potential seizures attached. Open communication with your debt counselor and creditors is crucial in avoiding these strict penalties and keeping one’s finances on track.

Final Thoughts

Whereas the journey towards debt review is long and tricky, it can easily be shortened if one has the will and strategically manages financial matters. Increased income, decreased expenses, and on-time payments are sure bets South Africans placed under debt review for working towards freedom from debt. Also, understanding the legal constraints and a good working relationship with a debt counselor are prerequisite strategies that guarantee the successful completion of the debt review and regaining control over your financial future.

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