Debt Review

What Is a Clearance Certificate and Why Is It Important?

A clearance certificate is one of the most important milestones in debt review.

It officially confirms that you have completed the process.

What is a clearance certificate?

A clearance certificate (Form 19) is issued by a registered debt counsellor when:

  • All short-term debts are paid in full
  • Secured debts are up to date
  • The repayment plan has been successfully completed

It is the formal proof that debt review is finished.

What happens after it is issued?

Once issued:

  • Credit bureaus are notified
  • The debt review listing is removed
  • You regain the ability to apply for credit

Your credit score will still depend on your payment history.

Why it matters

Without a clearance certificate:

  • Your debt review status remains active
  • Credit applications will be declined
  • Your profile stays flagged

It is the document that officially restores your financial standing.

How long does removal take?

After issuance, credit bureaus usually update records within several business days, although timeframes can vary.

Final thoughts

A clearance certificate represents financial discipline and recovery. It is proof that you completed your obligations responsibly.

If you are nearing completion or need help understanding your progress, you can request support at:

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By admin, ago

Can You Buy a Car While Under Debt Review?

A common question is whether you can finance a vehicle while under debt review. The short answer is no, but the full explanation is important.

Debt review restricts access to new credit while the process is active.

Why new credit is restricted

When you enter debt review:

  • Your credit profile is flagged
  • Credit providers are notified
  • You are considered formally over-indebted

Because of this status, granting new credit would contradict the purpose of debt review.

What if you need a vehicle?

If you already have a car finance agreement included in debt review:

  • It is usually prioritised in the repayment plan
  • The aim is to protect the asset
  • Instalments are restructured but maintained

If your vehicle breaks down and you need another one, the situation becomes more complex.

In some cases:

  • A court variation may be required
  • A reassessment of affordability may be needed

Each case must be evaluated individually.

Why this rule protects you

The restriction on new credit is not punishment. It prevents:

  • Further debt accumulation
  • Increased financial pressure
  • Failure of the repayment plan

It helps you focus on completing the process.

What happens after completion?

Once you receive a clearance certificate and your debt review status is removed:

  • You may apply for credit again
  • Approval depends on credit assessment
  • Rebuilding credit responsibly becomes important

Final thoughts

While under debt review, the focus is stability and repayment. Large new financial commitments are restricted to protect your long-term recovery.

If you are concerned about vehicle finance while under debt review, you can get advice at:

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By admin, ago

What Happens If You Miss a Payment While Under Debt Review?

Missing a payment while under debt review can feel stressful. Many people worry that everything will collapse immediately. The truth is more structured and depends on how quickly you act.

Debt review is regulated by the National Credit Act and works on the condition that you comply with the repayment plan. When you miss a payment, that compliance is affected.

Here is what you need to know.

Why payments matter

When your repayment plan becomes a court order or formal agreement, it becomes legally binding. As long as you pay according to that plan:

  • Credit providers cannot take legal action
  • Your assets remain protected
  • You continue progressing toward clearance

A missed payment disrupts that protection if not resolved quickly.

What happens immediately after a missed payment?

If you miss a payment:

  1. The Payment Distribution Agency may notify your debt counsellor
  2. Credit providers may flag the account as non-compliant
  3. Arrears may begin to accumulate

One missed payment does not automatically terminate debt review. However, repeated missed payments can lead to termination.

Can debt review be terminated?

Yes. If payments are consistently missed, credit providers may issue a termination notice. Once terminated:

  • Legal protection can fall away
  • Credit providers may resume legal action
  • Collection activity may restart

This is why communication is critical.

What should you do if you cannot pay?

If you anticipate missing a payment:

  • Contact your debt counsellor immediately
  • Explain the reason (income delay, emergency expense, retrenchment)
  • Discuss possible adjustments

In some cases, repayment plans can be reviewed if income has changed.

The importance of acting early

Most problems in debt review happen when consumers ignore communication. Acting quickly often prevents escalation.

Debt review is designed to help consumers, but it requires cooperation and honesty.

Final thoughts

Missing one payment is not the end of debt review. Ignoring the situation is what causes problems.

If you are struggling to keep up with payments or worried about termination, you can request guidance and support at:

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By admin, ago

How Debt Counselling Helps You Negotiate Lower Payments and Interest Rates

One of the biggest challenges with debt is interest. Many consumers feel like they are paying every month, but their balances do not decrease.

Debt counselling exists to help consumers who are struggling with this exact problem.

In South Africa, debt counselling forms part of the debt review framework regulated by the National Credit Act and overseen by the National Credit Regulator.

Here is how it helps.

Understanding the problem with high interest

When you only pay minimum instalments:

  • A large portion goes toward interest
  • The capital balance reduces slowly
  • The repayment period extends

Over time, this can trap consumers in long-term debt.

Debt counselling addresses this by restructuring how debts are repaid.

Step 1: Reviewing your full financial picture

A registered debt counsellor starts by:

  • Reviewing your income
  • Listing essential living expenses
  • Confirming all outstanding debt balances

This creates a clear picture of what you can realistically afford.

Step 2: Determining over-indebtedness

If you cannot meet your obligations after covering necessary expenses, you may be considered over-indebted under the National Credit Act.

This formal determination allows the counsellor to proceed with restructuring negotiations.

Step 3: Negotiating with credit providers

Debt counsellors negotiate repayment proposals with credit providers. These proposals may include:

  • Reduced monthly instalments
  • Extended repayment terms
  • Lower interest rates
  • Reallocation of payment priority

Credit providers often agree because:

  • They prefer structured repayment over default
  • The process is legally regulated
  • It reduces the risk of non-payment

Step 4: One affordable monthly payment

Instead of juggling multiple instalments, the consumer pays one consolidated monthly amount through a Payment Distribution Agency.

This simplifies repayment and ensures consistency.

Why this works

Credit providers are more willing to negotiate within a regulated legal framework. Debt counselling is not informal begging for lower payments. It is a structured, regulated process backed by legislation.

The goal is simple:
Make repayment possible without causing financial collapse.

Final thoughts

If interest is keeping your debt from shrinking and you feel stuck, structured negotiation through debt counselling may provide relief.

To understand what your repayment could look like after restructuring, you can request an assessment at:

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By admin, ago