What to know before you pay someone to “clear your name”
Things have changed. You can afford your debt repayments again.
And so, you ask if this means you can cancel being under debt review. Can you carry on settling your debts yourself?
The answer is a hard no.
You can’t just walk away from being under debt review and the process isn’t as simple as paying someone to remove a flag.
How you get out of debt review depends on where you are in the process. A debt counsellor also can’t cancel an established debt review because you ask them to.
So, if you want to know how to get out of debt review, you’ll have to start by talking to your registered debt counsellor.
Ask them exactly where you are in the process and what needs to happen next.
You may still need to finish the process to qualify for a clearance certificate.
This could include things like:
- Getting paid-up letters from your credit providers
- Checking whether you qualify for a clearance certificate
- Completing the correct paperwork
- Making sure your debt review status is updated
If your situation needs to go back to court, the process will be different.
The reality of debt review is that it takes time. Missing documents, wrong balances or a court process can make it take even longer.
So be very careful if someone promises debt review flag removal in a guaranteed number of days.
The National Credit Regulator (NCR) warns about companies offering debt review removal for upfront fees. Some consumers have been asked to pay as much as R10 000 upfront, with the promised removal often not happening.
Never hand over your hard-earned money because of a promise to instantly “clear your name”.
Check who you are dealing with. If they claim to be a debt counsellor, ask for their NCR registration number and check it on the NCR register.
Protecting your financial stability after debt review
Once your debt review status has been properly removed, check your credit report again. Make sure the debt review flag has gone and that accounts you have settled are showing correctly.
Then keep paying your accounts on time, know your credit score, check your credit report regularly and think carefully before taking on new debt.
Getting these basics right goes a long way towards helping you protect your finances. Easily.
Get your free credit report anytime, any number of times a year
Not sure what is showing against your name? Start by looking at your credit report before paying anyone to “remove” anything. It will help you see what is currently recorded, check whether your accounts are up to date and know where you stand.
