Woman holding debt clearance certificate.

3 Common Obstacles in Obtaining A Debt Clearance Certificate

Are you ready to turn over a new financial leaf? Getting a debt clearance certificate is the first line of action for obtaining a clean credit record and the ability to take out loans and other credit once more. However, the road to financial freedom isn’t always a smooth one. You may face obstacles when applying for your debt clearance certificate. Here are the challenges you might face during your application and issue of your debt certificate, and ways to mitigate these issues.

1. Incomplete Debt Review Process

Incomplete documentation, processes, or debt review may greatly impact your ability to attain clearance certification.

Outstanding Payments

All debt included in your review must be amended and repaid. Missed and late payments can significantly delay the process.

Non-Cooperate Creditors

Some creditors may choose to be uncooperative with your debt counsellor, causing delays or refusing to accept proposed repayment terms.

Court Proceedings

Court proceedings may also cause delay, impacting the proposed timeline to receive the certificate.

2. Administrative Problems

Administrative problems may be the cause of late certificate issuing.

Missing Paperwork

If specific paperwork is missing, or you have failed to submit paperwork, like debt payments and statements for instance, you could experience delays in attaining your debt clearance certification.

Credit Bureau Updates

It takes time for the credit bureau to update its credit records after receiving clearance notification from your debt counsellor.

Unmet Legal Requirements

If you haven’t adhered to your debt review prescribed period or debt review agreement terms, legal proceedings may go awry, hindering the certification process.

3. Personal Finance Problems

If you face issues with personal finance or lack of funds, here’s what to do.

Financial Distress

Unexpected financial setbacks, like job loss, high debt counselling fees, or a reduced income could make completing payments difficult.

What To Do To Make Getting A Debt Clearance Certificate Easier

Those who fail to plan plan to fail.

Be sure you’ve chosen a debt counsellor who is registered with good reviews and understands  your situation and the required documentation to undergo debt clearance certification, such as financial statements, pay slips, and debt statements to avoid delays. Also, maintain transparency with your debt counsellor, they will not judge you.

Educate yourself on the debt review process and debt clearance process, as well as the legislation around debt clearance and credit to better understand your situation.

You may also find automating payments and creating a budget helpful, as this will help you manage your remaining debt payments.

Now that you know why obtaining a debt clearance certificate might be difficult and what to do about it, contact one of our professionals to help get you on your way!