Debt can be overwhelming, and being under debt review often feels like a weight you can’t shake off. Many people find themselves stuck, wondering how to get out of debt review and clear their name from the credit bureau so they can finally move forward financially. But here's the thing—there's only one true way to do it: settle all your debts. And once you do, a registered debt counsellor is the only person who can issue you a Form 19, or clearance certificate, to officially free you from debt review.
Let’s break it all down, so you know exactly what steps to take to regain your financial freedom.
2. Why Being Under Debt Review Affects Your Credit Score
3. How to Get Out of Debt Review: The Only Way Is to Settle All Debts
4. Why Only a Registered Debt Counsellor Can Issue a Form 19
5. The Cost of Removing Debt Review
6. Step-by-Step Guide to Clearing Your Name from the Credit Bureau
7. Why Attorneys and the NCR Can’t Remove Debt Review
8. What Happens If You Can’t Afford to Settle All Your Debts?
9. Can You Apply for Credit After Debt Review
10. How We Can Help You Get Out of Debt Review
11. Final Thoughts: The Road to Financial Freedom
1. What Is Debt Review?
Debt review is a legal process introduced by the National Credit Act (NCA) in South Africa. It’s designed to help people who are struggling to pay their debts by giving them an opportunity to restructure their repayments. The process shields you from legal action by your creditors and helps you manage your debt without sinking further into financial trouble.
A registered debt counsellor will assess your financial situation and negotiate better repayment terms with your creditors. But while you're under debt review, there’s one major downside: you won’t be able to take on new credit until your debts are fully settled.
2. Why Being Under Debt Review Affects Your Credit Score
While debt review helps you manage overwhelming debt, it does come with significant consequences for your credit score. Once you enter debt review, your credit status is flagged at the credit bureau, which will make it difficult—if not impossible—to apply for loans, credit cards, or any other type of credit.
But don’t worry. The good news is that once you’ve paid off all your debts and completed the debt review process, there’s a way to get that flag removed.
3. How to Get Out of Debt Review: The Only Way Is to Settle All Debts
Here’s the key: the only way to remove your debt review status is to pay off all your outstanding debts. There are no shortcuts. Partial payments or debt settlements won’t do the trick. You need to fully settle all your debts to start the process of getting out from under debt review.
Once you’ve done that, your debt counsellor will be able to issue a Form 19 clearance certificate, which is the official document that shows you’ve completed the debt review process.
4. Why Only a Registered Debt Counsellor Can Issue a Form 19
It’s crucial to understand that only a registered debt counsellor has the legal authority to issue a Form 19, which is the clearance certificate you need to officially exit debt review and clear your name from the credit bureau.
Many people mistakenly believe that attorneys or the National Credit Regulator (NCR) can assist in this process, but that’s not true. Attorneys do not have the power to remove debt review flags from your credit record, and the NCR’s role is regulatory—they oversee the debt review process, but they cannot clear your debt review status.
This step has to come from an NCR-registered debt counsellor who will submit your Form 19 to the credit bureaus after all your debts are paid off.
5. The Cost of Removing Debt Review
The process of removing debt review does involve some fees. Typically, this will cost you around R2000 to R3500, depending on the complexity of your case. These fees cover the administration involved in processing your clearance certificate and getting it submitted to the relevant credit bureaus.
It’s important to understand that while these costs may vary, this is a necessary part of the process and should be factored into your financial planning when you're close to settling your debts.
6. Step-by-Step Guide to Clearing Your Name from the Credit Bureau
Once you’ve settled your debts, here’s what happens next:
- Settle All Debts: Ensure that all outstanding debts are paid in full. This is the first and most critical step.
- Request Form 19 from Your Debt Counsellor: After all debts are settled, you need to ask your registered debt counsellor to issue your clearance certificate (Form 19). This document proves you’ve completed the debt review process.
- Submission to Credit Bureau: Your debt counsellor will then submit this certificate to the credit bureaus (like TransUnion or Experian) to update your credit profile.
- Wait for Confirmation: It typically takes a few days for your credit record to be updated. Once updated, your debt review status will be removed, and you can start applying for credit again.
7. Why Attorneys and the NCR Can’t Remove Debt Review
A common misconception is that you can hire an attorney to remove your debt review status. However, this isn’t true. Attorneys do not have the legal authority to remove debt review from your credit record. The same goes for the NCR—while they regulate the industry, they cannot issue a Form 19 or clear your name from the credit bureau.
The only way to remove this flag is through a registered debt counsellor once all your debts are fully settled.
8. What Happens If You Can’t Afford to Settle All Your Debts?
If you can’t afford to settle your debts immediately, you’ll need to continue making your payments under the terms of your debt review plan until your debts are cleared. Unfortunately, until your debts are settled in full, you will remain under debt review, and your credit record will continue to reflect that status.
If you find yourself stuck or unsure how to proceed, don’t hesitate to reach out for advice.
9. Can You Apply for Credit After Debt Review?
Once your debts are settled and your Form 19 has been issued and submitted to the credit bureaus, your debt review status will be removed. At that point, you can begin applying for credit again. It’s essential to approach this cautiously and ensure you’re in a good financial position before taking on new credit.
10. How We Can Help You Get Out of Debt Review
Navigating the process of getting out of debt review can be tricky, but we’re here to help. Our team can guide you through the steps and assist in removing your debt review status once you’ve settled all your debts.
Feel free to contact us at 057 3524115, send us a message via WhatsApp, or fill out our contact form for personalized advice.
11. Final Thoughts: The Road to Financial Freedom
Getting out of debt review might feel overwhelming, but remember, the path is clear: settle all your debts and work with a registered debt counsellor to get your clearance certificate. Don’t fall for myths that suggest an attorney or the NCR can speed up the process. Only a debt counsellor can legally issue the Form 19 clearance certificate you need.
By following these steps, you’ll be on your way to a debt-free life and will soon be able to enjoy financial freedom again.