Count Down to Debt Free Life
From application to clearance certificate, debt review duration hinges on how long it takes to settle all of your unsecured debts. Even more so, the duration of debt review relies upon whether or not you honour your monthly commitments unfalteringly, as skipping one payment automatically terminates the debt review process.
Debt review duration depends on your personal situation, as some individuals may be more indebted than others. Thus, it’ll take a person, with a greater amount owed, much longer to clear their debts, than it would someone with a lower outstanding balance. Nevertheless, the average debt review duration is usually 60 months or 5 years.
As soon as your debt counsellor receives ‘paid up letters’ from your creditors, they’ll issue you with a clearance certificate. Subsequently, your debt counsellor will inform your credit providers, the National Credit Regulator (NCR) and the credit bureaus of your debt free status, who will accordingly remove all negative listings from your credit record.
Once you have settled all of your smaller debts, you will be rehabilitated back into the credit market, even if you are still paying off your bond or home loan. However, it’s sometimes the case that, once they’ve repaid these accounts, some people withdraw from debt review. Then they’ll continue to make their mortgage payments directly to their credit providers on their own speed.
Pregnant women may opt to undergo debt review for the duration of their maternity leave, as during this time they’ll only be receiving a percentage of their normal monthly salary. In this way, debt review will provide them with the cash flow relief they need, while they are earning less.
Once maternity leave is over, though, they would cancel the process, as they’ll again be paid in full, upon returning to work. Similarly, some people undergo a debt review duration of only a few months, while awaiting the finalisation of the sale of an asset, withdrawing once they receive the money.
The debt review application process itself, firstly, entails submitting a copy of your ID and 3 months’ worth of payslips or bank statements. Furthermore, you’ll be required to fill out an official debt review application.
Thereafter, your debt counsellor will pull your credit report, register you on the NCR system and enter your details into our personal database.
Next, your debt counsellor will notify your creditors of you having entered a debt review programme and request to be sent details of your account balances, consequently capturing all of this data.
Once all the blanks have been filled in and we have a holistic picture of your financial affairs, your debt counsellor will draw up a new debt repayment plan for you, taking your personal circumstances, living expenses and affordability into account.
If you are happy with this restructured plan, we’ll propose it to your creditors and await for them to respond with a counter proposal or acceptance letter. Upon the agreement being finalised, your debt counsellor will prepare a court application and request that a court date be set.
We will then attend court on your behalf and request that the Magistrate of the Court approve your application. The duration of this application process generally takes 60 business days, from personal application to court application, thereby legally putting you under debt review.