Thinking About Exiting Debt Review in South Africa? Here’s What You Need to Know!

By Sibabalwe Dakana – Registered Debt Counsellor & Debt Review Removal Expert in South Africa (NCRDC3106)

You are here because you are thinking about exiting Debt Review?

While cancelling debt review may seem like a simple escape route, the debt review removal process can be complex and demanding. We have also noted that ever since we started to assist consumers with their debt review removal applications there has been a growing demand for debt review removal, but a lot of misinformation surrounds it. This article aims to clear the air, unveil the untold truth and explain the key considerations when navigating debt review removal in South Africa.

Why Exit Debt Review?

1. Improved Financial Situation – Some individuals may have successfully managed their debt through debt review and are no longer considered over-indebted. They might seek removal to regain access to credit for essential purchases or long-term goals like homeownership.
2. Improper Debt Review Listing – Unfortunately, there have been instances where individuals were placed under debt review inaccurately. This could be due to errors or unscrupulous debt counsellor practices. In such cases, debt review removal can be a way to rectify the situation and regain control of their credit profile.

It is important to note that;

Exiting debt review is a significant decision with potential consequences. It’s crucial to understand your financial situation thoroughly and the implications of leaving the program. Consulting with a reputable and experienced debt counsellor can help you explore all your options and make an informed choice.

Debt Review Removal Misconceptions

Exiting debt review in South Africa can seem like a quick fix, but there’s a lot of misinformation out there. Here are some common misconceptions that could land you in hot water;

Myth #1: The Debt Review Removal Process is Easy.

• Exiting debt review isn’t a simple process. It requires following specific legal procedures based on each client situation.

Myth #2: There are No Consequences.

• Not complying with a debt review court order can lead to serious penalties under Section 160 of the National Credit Act (NCA).

161. Any person convicted of an offence in terms of this Act, is liable-
(a) in the case of a contravention of section 160( I), to a fine or to imprisonment
for a period not exceeding 10 years, or to both a fine and imprisonment; or
(b) in any other case, to a fine or to imprisonment for a period not exceeding 12
months, or to both a fine and imprisonment.

Section 161 of the National Credit Act of 2005

Myth #3: Thinking that you will still enjoy the protection and benefits of debt counselling.

•  Leaving debt review means losing legal safeguards and reverting to original credit terms. Be sure you’re financially ready before taking the leap because some creditors will take legal action.

Myth #4: Lawyers Do It All (My Attorney will deal with this)

• Attorneys cannot directly remove your debt review listing. Debt counsellors handle the process with attorney assistance when needed for court appearances.

Myth #5: I Can Easily Afford Debt Review Removal

While exiting debt review offers freedom, it’s important to understand the financial implications. Contrary to popular belief, debt review removal often incurs hefty fees. Legal professionals like attorneys and some debt counsellors can charge anywhere between R1500 and R12000 for the application process itself.

Here at The National Debt Review Center, we offer a transparent approach with a fixed fee of R8550, payable conveniently over 2-3 months. However, this doesn’t cover everything. You’ll still need to factor in:

1. Your original Debt Repayments: Exiting debt review means resuming your original debt repayments, so ensure your financial situation can handle that responsibility.
2. Outstanding Debt Counselling Fees: There might be outstanding debt counselling fees from your previous debt review plan.

Therefore, we strongly advise that if you are considering debt review removal, do so only if your financial situation has truly improved and you’re no longer over-indebted.

Why Experienced Debt Counsellors Are Essential for the Debt Review Removal to be Successful.

Debt review removal can be a confusing process with many steps and legal aspects. Here’s why partnering with an experienced debt counsellor is crucial for a smooth and successful exit:

1. Debt counsellors understand the National Credit Act (NCA) sections relevant to different removal situations. This knowledge ensures you follow the correct procedure and avoid delays or mistakes.
2. They can guide you through the lengthy application process, gathering required documents and conducting over-indebtedness assessments. Debt counsellors will always be with you every step of the way, making it easier and faster to complete the entire debt review removal process.
3. In cases requiring court appearances, experienced debt counsellors can draft affidavits, represent you in court (or instruct qualified attorneys when necessary), and ensure proper order fulfillment. Their experience significantly increases your chances of a successful outcome.
4. Even after a successful removal order, there are steps with the National Credit Regulator (NCR), the bureaus and the credit providers to update your records. Debt counsellors handle these details for you, ensuring your credit report reflects your new debt-free status.

By partnering with an experienced debt counsellor, you gain a valuable expert who simplifies the complexities of debt review removal, protects you from errors, and helps you achieve your financial goals.

Here are some of the Debt Review Removal Scenarios.

Exiting debt review can be an attractive option, but the debt review removal process can be confusing.

Here’s a breakdown of the three main removal scenarios:

• Status B Rejection (Section 86(7)(a) NCA):
  • Applicable if a debt counsellor determines you’re not over-indebted within 5 business days of applying for debt review. (Read More about this Here)
• Rejection of Proposal After Over-Indebtedness Finding (Section 87 NCA):
  • Occurs when you challenge a previous debt counsellor’s over-indebtedness ruling. (Read More about this Here)
• Clearance Certificate Route (Section 71 NCA):
  • Applies only if you’ve settled all debts or have an outstanding home loan. (Read More about this Here)

• Section 165 of the National Credit Act (NCA) read together with Section 28 of the National Credit Amendment Act of 2019 deals with the removal of debt review if there is a debt review court order in place.

Finding a Reputable Debt Counsellor who is an Expert in Debt Review Removal

With over 1500 registered debt counsellors in South Africa, choosing the right one for removal can be overwhelming.  

• Look for debt counsellors with a proven track record and expertise in dealing with debt review removal complexities.

By prioritizing experience and qualifications, you can find a trusted advisor who will guide you through the removal process confidently and efficiently.

Our Reviews from Real Debt Review & Debt Review Removal clients

Don’t just take our word for it! Read genuine reviews from real clients who have achieved financial freedom through our debt review and removal services. Discover how we helped them navigate complex situations and achieve their goals.

Conclusion

Debt review removal is a legal process with specific steps and potential consequences. Consulting a reputable & registered debt counsellor ensures a smooth and compliant exit strategy, protecting your rights and future financial well-being.

Don’t fall prey to companies promising quick and easy debt review removal. Contact The National Debt Review Center (NDRC), a trusted leader in debt counselling, for a free consultation and discuss your specific situation.

About the Author

Sibabalwe Dakana is a registered debt counsellor and have assisted thousands of South African’s with theirdebt review & debt review removal applications. The National Debt Review Center is committed to helping South Africans navigate the complexities of debt review and achieve financial freedom.

FAQ Section

How long does debt review removal take?

• The process of being removed from debt review typically takes between 3 to 6 months, although this duration can extend if there are complications and delays.

What are the costs involved?

• The cost of debt review removal through The National Debt Review Center is set at R8550.00 vat exclusive, with an option to pay this amount over 2 or 3 months.

What happens to my credit score after debt review removal?

• You will see a significant improvement immediately once the bureaus confirm that the debt review listing is removed. This is usually 21 business days after the NCR has confirmed the validity of the documents.