What You Should Know About Getting a Clearance Certificate with Debt Counselling

Can you imagine getting debt consolidation and finally seeing an open window at the end of your journey? It can be overwhelming, exciting and promises for a lot of relief.

Debt is no joke, especially if you’re in trouble because of it and while nothing can compare to concluding months’ worth of struggling to get your debt consolidated and repaid successfully, all you want is to hold your clearance certificate.

What Exactly is a Clearance Certificate?

Well, in terms of debt, it is physical proof that you don’t have debt to your name, or your business’ name any longer.

It comes in the form of a letter, which is generally issued by your debt counsellor, stating that you have successfully settled all relevant debt, by completing a debt restructuring plan.

It thus allows you to be eligible to receive such a certificate, but this is only allowed to be issued when all your unsecured debt is paid, your bond and long-term payment agreements are up to date, as well as if your debt counselling fees are paid.

Who Will Receive the Clearance Certificate?

Upon receiving your copy, your debt counsellor will also keep a copy. It will also be issued to all credit providers, as well as the credit bureaus you are listed with.

What Happens After You’re Cleared?

The moment the relevant credit bureaus receive your certificate, is the moment they’ll be able to remove all your debt counselling status from their systems, as well as any default listings, or negative data against you, leaving your payment history the only documentation to remain on their books. Your payment history will remain for up to 2 years.

Are You Allowed Credit After Getting Your Clearance Certificate?

Yes, you are, but not always right away. Although it is possible, your credit providers might take their time to notify their credit bureaus of your successful debt consolidation, which after might also take time to get all the relevant records cleared.

You’ll also have to allow time for your credit score to be recovered, and you’ll have to monitor your credit report. It should take a few months before you’re able to obtain credit once again.

Get debt counselling help from Credit Matters. Call today! 086 111 6197