How to Effectively Remove Yourself from Debt Review

Published by The National Debt Review Center on

Learn How to Effectively Remove Yourself from Debt Review!

The National Debt Review Center

What is the purpose of this article?

As someone who applied for debt review, you may feel trapped in a program that does not benefit you. Removing yourself from debt review can be challenging but achievable if you understand the legal process. This article will walk you through the steps to legally and effectively exit debt review so you can regain control of your finances.

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You will learn the requirements to apply for debt review termination, how to submit an application to your debt counsellor, and what actions to take if your application gets denied initially. With persistence and strategic planning, freedom from debt review is possible. Follow the guidance herein and you will be equipped to close this difficult chapter in your financial life.

When Should You Consider Removing Yourself from Debt Review?

  1. If your financial situation has improved significantly and you no longer need the assistance of debt review.
  2. if being under debt review limits your ability to access further credit. If you need to take on more credit for a significant reason, such as buying a house, you might consider cancelling your debt review.
  3. When you have found another debt solution that suits your circumstances better.
  4. When you have been incorrectly listed as under debt review.
  5. You are already making direct payments to your creditors.
  6. Your debt review has been terminated and cannot be reinstated.
How To Effectively Remove Yourself From Debt Review

What to Expect After Leaving Debt Review

Once you’ve completed the debt review process, a debt counsellor will issue you with one of the following documents.

  • If your application was rejected before you were declared over indebted. The debt counsellor will provide you with a rejection letter and the confirmation from the regulator (NCR) regarding their satisfaction with the validity of the documents supplied and update the NCR Debt Help System (DHS) accordingly.
  • If your application was for a clearance certificate. The debt counsellor will provide you with a commissioned clearance certificate and update the (DHS).
  • if you were already declared overindebted and your application was rescinded or rejected in court a debt counsellor will forward you the issued application and the court order as well as the confirmation from the NCR regarding the satisfaction and validity of documents supplied.
  • All major credit bureaus will update your credit profile and remove the debt review flag.
  • All credit providers subject to your debt review application will also update their internal systems and remove the debt review flag to reflect that you are no longer under debt review.

Once the debt review listing is removed from your credit profile

  1. The original repayment amounts will be reinstated.
  2. The original contractual interest rates become applicable again. 
  3. If you cancel your debt review program, any penalties waived on your overdue payments may be reinstated on your accounts. These penalties were forgiven during the program, but they can be charged again once you exit it.
  4. Any payments that were almost prescribed will be reactivated due to new payment arrangements made.
  5. Credit providers may initiate legal action. Since you will no longer have the protection provided by debt review, creditors have the right to enforce credit agreements that were previously under review. They may demand settlement of any arrears that accumulated during the review period and revert to the original contractual repayment amounts.
  6. Debt review can negatively affect your credit score. When you cancel the process, your credit score may not immediately improve. It will take time for your credit history to reflect the changes, and any previous defaults or late payments may still impact your creditworthiness.
  7. Without the structured repayment plan provided by debt review, managing multiple creditors and payments can become challenging. You’ll need to handle negotiations and payment arrangements independently, which can be overwhelming.
  8. Debt review helps manage debt and reduce stress. Cancelling it could bring back the anxiety of managing debt on your own and dealing with creditor communication. Be sure you’re ready for this change before you cancel.

How Do I Remove Myself from Debt Review?

We need to consider the following before we can advise if your removal application will be successful or not.

  1. How far is your debt review application?
  2. What is your current debt review status?
  3. Can you afford the original repayments and interest rates?
  4. Are there any prescribed accounts?
  5. is there a court order in place?
  6. Where was the court order granted (Magistrates Court or National Consumer Tribunal)? (if granted)
  7. Are there any creditor terminations?
  8. Are you already making direct payments to the creditors?
  9. What are your reasons?
  10. Does the law allow you to rescind the order (if granted)?
  11. Do you understand the penalties?

Once you have established these you will be in a better position to understand if there is a need for a court application, a rejection or a clearance certificate.

Remember.

You will not need to go to court or pay unreasonably high legal fees if you need a rejection or a clearance certificate. The fee for a rejection is R350 and a clearance certificate fee is R450

To answer your question “How Do I Remove Myself from Debt Review?” follow the provided guidelines and contact The National Debt Review Center should you need further assistance.

Book with us below.

Conclusion of our How to Effectively Remove Yourself from Debt Review Article.

Leaving debt review is an opportunity for a fresh start. By monitoring your credit, limiting new debt, and making on-time payments, you can continue rebuilding your credit and work towards qualifying for prime rates and terms. Staying committed to financial responsibility and discipline will enable you to achieve a strong credit standing again.

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The National Debt Review Center

Welcome to The National Debt Review Center, where financial stability and integrity are our guiding principles. We strive to deliver the utmost best in customer service & act with the highest standards of integrity. We are South Africa's best Debt Counselling & Debt Review Removal Company. NCR Registration Number - NCRDC3106

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