What Happens After Debt Review?
When consumers get into trouble with debt, some of their first worries include the fact that they may damage their credit record or not be permitted to use it in the future.
There are many solutions you may come across once you’ve acknowledged the fact that you indeed require debt assistance. Just because it is listed as a solution, however, does not mean that it will protect or assist you in restoring your credit record thereafter, nor prevent you from not being able to apply for credit in the future.
During the debt review process, all consumers must understand what they can do, as well as what they are not allowed to do. For instance, consumers are not allowed to either apply nor, use credit during the period that they are under debt review. This generally lasts 60 days and may require you to be bound to debt review terms until you’ve managed to repay all your debt. Many consumers tend to shy away from debt review and tend to look past all the benefits it has to offer.
Perhaps one of the biggest benefits is that it helps you get out of debt faster than any other method, which is something every indebted person wants.
Debt Review – What Happens After You’ve Successfully Finished Your Debt Review?
During debt review, you will be listed with all credit bureaus in the country. Your credit providers will also be notified that you are under debt review. Credit bureaus follow with flagging your credit profile as ‘under debt review’ on their system. This is merely done to prevent you from taking on more credit until your debt counseling is completed and your financial situation is rehabilitated.
After your debt review, you will be issued a clearance certificate by the National Credit Act (NCR) from your creditors and be notified of your successful debt review. All your credit providers will then also be notified, upon which they too must remove your ‘under debt review’ status, which then will allow you to take on credit once again.
Once you have completed your debt review and received your clearance certificate, it is important to learn how to manage your credit and finances in such a way, that you don’t risk getting caught up as overindebted again.