How to remove your name from debt review?
Now that you’ve completed the debt review process, how do you remove your name from debt review? To understand what happens once you’ve completed the process, you need to understand what happens while you’re under debt review.
What happens while you’re under debt review?
Once you’ve been accepted to undergo debt review, Debt Rescue notifies all credit bureaus and credit providers that you are under debt review. Thereafter, the credit bureaus flag your profile as ‘under debt review’. Once your profile has been flagged, you won’t be eligible to take out any more credit.
Why can’t you take out debt while under debt review?
The aim of debt review is to get you out of debt and help you restore your financial situation. Taking out additional debt while you’re under debt review will hinder the entire process.
What happens once you’ve completed the process?
Once you have paid off all of your debt, you will receive a clearance certificate. Your debt counsellor will notify the credit bureaus. Within 21 business days of being notified that you have completed the debt review process, the credit bureaus will be legally required to remove the ‘under debt review’ flag from your credit profile. You will then be allowed to apply for credit once again and make purchases for a house or car under credit. Your application will not be denied or affected because you were previously under debt review.
If by any chance your application for credit is denied, you can get a copy of your credit report to make sure that the bureaus have removed the ‘under debt review’ flag from your profile.
How can you avoid becoming over-indebted after the process?
During the debt review process, we help you with financial planning and advice to prevent you from becoming over-indebted again. To avoid falling into the same debt trap, it’s important to follow a budget plan and make sure you’re able to save and invest too.
For advice on how to manage your money effectively, follow our money management blog.